Donors & The CARES Act
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is well known for the economic stimulus checks provided to millions of Americans this year. But this sweeping legislation also includes two new temporary tax benefits for donors giving to nonprofits.
- Universal Deduction for donations up to $300
Even if you no longer itemize your charitable giving, CARES allows individual taxpayers a charitable deduction up to $300. This is a temporary “above the line” deduction for 2020.
- Raised Charitable Giving Deduction cap
For those who still itemize their deductions, CARES lifts the current charitable giving deduction cap from 60% adjusted gross income to 100% AGI for individuals and joint filers. The deduction cap for corporations is lifted to 25%.
Keep in mind that these changes are most-likely temporary, so if you would like a charitable deduction of $300 or if you are considering a significant gift to Flat Rock, 2020 is a good year to make a gift.