tax form

CARES Act - Charitable Giving (Section 2204 – 2205)

Partial Above the Line Charitable Deduction for Individual Donors: Provides a maximum deduction of $300 for charitable contributions for taxpayers that elect not to itemize their deductions on their tax return.  The tax incentive applies to cash contributions only and does not apply to contributions to a supporting organization, a Donor Advised Fund or a carryover contribution.  It is effective for contributions made in calendar year 2020.

The inclusion of an expanded charitable giving incentive is a critical acknowledgement by Congress that nonprofits need an infusion of financial resources to maintain and expand services to meet growing community needs, while also protecting the health of their staff, volunteers, and constituents.  It is the first time Congress has passed this type of giving incentive in response to a disaster or national emergency.

Also Suspension of AGI Limits for Individual and Corporate Donors: For contributions made in cash during 2020, the 60 percent AGI limits would not apply to individuals. The limit for contributions from corporations would be increased from 10 percent of taxable income to 25 percent. The suspension is effective for qualified contributions made in 2020.

Source:(Always consult a tax expert to find out how rules apply to you)