23 Jul CARES Act – Tax Information for 2020
Charitable organizations like Inter-Faith are struggling now more than ever to meet community needs related to the coronavirus. To help meet those needs, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) provides important incentives for donors to give more in 2020, thanks to the following key provisions:
– Universal Charitable Contribution Deductions for All. A new universal charitable deduction allows all individuals to take a deduction of up to $300. As a result, people who take a standard deduction (approximately 92% of taxpayers), rather than itemizing their deductions, can now benefit from their charitable contributions.
– Ability to Donate 100% of Adjusted Gross Income. The former limit of 60% adjusted gross income on gifts of cash to charities and private operating foundations that applied to individuals is now lifted.
– Higher Cap on Corporate Giving. Corporations are now able to give up to 25% of their adjusted income rather than 10%.
– Higher Cap on Food Inventory Donations. Corporations are now able to donate up to 25% of their adjusted gross income for food inventory, up from 15%.
We have seen such an outpouring of generosity since the COVID pandemic hit, and we are so grateful for your support, which has gone a long way toward meeting the needs of families our programs serve.