Important Announcement to our Benefactors: The CARES Act offers multiple potential tax incentives to promote charitable giving by December 31, 2020On March 27, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law to help combat the far-reaching impacts of COVID-19.
Potential benefits include the following:
- Benefactors who itemize can deduct cash contributions to offset up to 100% of their adjusted gross income (AGI). Ordinarily, this income tax charitable deduction for cash gifts is limited to 60% of AGI.
- The 100% limit allows generous donors to reduce their 2020 federal income tax to zero. Existing carry-over rules still apply, so those who are even more generous can carry forward unused cash contribution deductions for up to five years.
Loyola Blakefield advises benefactors to check with their tax advisor to learn more about how the CARES Act may specifically apply to their tax situation.