The CARES Act—the Coronavirus Aid, Relief, and Economic Security Act—contains several enhanced charitable giving incentives for individuals and companies in 2020.
Temporary Universal Charitable Deduction—Taxpayers who do not itemize their deductions can take a one-time deduction of up to $300 for gifts made to charitable organizations. The provision is intended only for the year 2020; however, in the text of the bill, it states taxable years “beginning in 2020 …” and does not include a sunset date. Thus, it conceivably could extend beyond 2020. The deduction is ONLY for gifts of cash made in the calendar year 2020 and does not cover other types of gifts, grants, or contributions made to donor-advised funds or private foundations.
The IRS will suspend the 60 percent adjusted gross income limitation for individuals’ charitable contributions for the year 2020. In a typical year, individuals can only take a charitable deduction of up to 60 percent of their adjusted gross income, no matter how much they give. For 2020, there is no limit, making cash contributions fully deductible.
Increases the cap on how much corporations may deduct for charitable gifts from 10 percent of taxable income to 25 percent. Also, the limitation on deductions for food donations by corporations increases from 15 percent to 25 percent in 2020.
Your support of the Million Meal Movement and our mission to end hunger allows us to respond to the changing needs of our community quickly. Coping with this pandemic will strain us all, but these hardships will be even more challenging for families who have children missing out on school meals, who work for hourly wages they cannot earn, and who do not have the resources to stock up on food or supplies.
Donating is an excellent way to help us fight hunger at home right now. It gives us the flexibility to respond to the needs of local food banks and food pantries as they arise and helps us offset the costs of our meal packs. Just $1 provides 4 meals, and a small gift of $10 means 40 nutritious meals for hungry Hoosiers.
We need your help more than ever.
For more information on charitable giving, call 317-863-8655 or email us at firstname.lastname@example.org.