The CARES Act Charitable Donations
The Cares Act (Coronavirus Aid, Relief, and Economic Security) encourages individuals and corporations to increase their giving this year by increasing charitable deduction thresholds.
- Individual Itemizers: Givers who itemize deductions are able to increase giving to the church/charitable organizations for cash gifts made in 2020. Unique to this year only, you are able to deduct up to 100% of your 2020 adjusted gross income.
- Individual Non-Itemizers: Givers who take the standard deduction are able to deduct up to $300 for cash gifts made in 2020, in addition to the standard deduction.
- Corporations: The CARES act also increases the limit on deductible corporate charitable gifts from 10% to 25% of the corporation’s taxable income. The additional 15% deduction is for cash gifts only.
Detailed information here.
IRS information here.
*Please seek the advice of legal counsel, a qualified accountant and/or financial advisor to determine if any of these tax-advantaged strategies are appropriate for you and your individual income tax circumstance.