How the CARES Act Impacts Charitable Giving

The Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law on March 27, 2020, to help combat the far-reaching impacts of COVID-19. The bill provides increased tax incentives for charitable giving for both individuals and corporations. The provisions of the CARES Act are set to expire at the end of 2020, but there is still time to take advantage of the benefits. Contact Jodi Gietl, our President & CEO, with questions on how you can maximize your year-end giving!

What Donors Need To Know

Corporate Donations The Adjusted Gross Income limit for cash contributions increased for corporate donors. Corporations can now deduct up to 25% of taxable income (up from 10%).

Donor-Advised Funds Donations These new incentives apply only to cash contributions to public charities and do not apply to contributions to supporting organizations or public charities that sponsor donor-advised funds.

Individuals Itemizing Deductions For cash contributions made in 2020, donors can now elect to deduct up to 100% of their adjusted gross income (increased from 60% ).

Individuals Not itemizing Taxpayers who do not itemize deductions may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying organizations.

IRA Donations Taxpayers age 70 1/2 or older can make a qualified charitable distribution from their IRA – up to $100,000 – directly to an eligible charity.


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