What’s in the CARES Act for philanthropy?
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), signed into law by President Trump on March 27, is the largest stimulus package in history. The Act unlocks $2 trillion in funds for American individuals and businesses impacted by COVID-19.
Here’s what the Act includes to help stimulate charitable giving:
- An above-the-line deduction for a “Qualified Charitable Contribution” of up to $300 for non-itemizers is available for cash contributions made to charities (excluding donor-advised funds and supporting organizations) for the 2020 tax year and beyond.
- For cash contributions to charities (excluding donor-advised funds and supporting organizations) made in 2020, the AGI limit is increased from 60% to 100%, with a 5-year carryforward for contributions that exceed 100% of AGI.
We encourage you to let your clients know about these tax incentives so they can help support the nonprofit organizations in our community that are delivering aid to the people most affected by the pandemic.