CARES Act and Charitable Giving

You can help protect our community’s rights, equity for all AND Save on YOUR TAXES!

The CARES Act, signed into law in March, included several provisions to help nonprofits affected by the COVID-19 pandemic by incentivizing charitable giving in ways that decrease your tax liability.

NEW THIS YEAR

• Everyone can take a deduction up to $300 even if you do not itemize your return. This affects only the 2020 tax return. (If filing married and jointly, the deduction is still limited to $300.)
  
• For those who itemize deductions, an individual can deduct charitable contributions up to 100% of their adjusted gross income (AGI). This amount is up 60% over 2019 allowances.
  
  • The donation must be cash and received in the current year
  • The charity must be registered as a 501(c)(3)
  • There is a limit of 40% of contributions to donor-advised funds, private foundations, and supporting organizations.
    
• If your 2020 donations exceed the AGI limit, cash donations may be carried forward but are subject to the 60% AGI limit in the following 5 years.

We recommend that you consult your tax advisor for additional information on the CARES Act allowances.

Have Questions? Contact Evan Davidoff, Senior Manager for Major Gifts.
edavidoff@thetaskforce.org
516-263-0335