2020 CARES Act Provides Incentives for Charitable Giving
On Friday, March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law to provide financial relief to individuals and businesses affected by the COVID-19 pandemic. Lawmakers also chose to include nonprofit organizations in the law, and outlined incentives for donors to to give to charitable organizations like Lakemary Center who provide vital support to individuals with intellectual and developmental disabilities.
This $2.2 trillion stimulus plan provides three important tax benefits that donors need to be aware of:
Temporary Universal Charitable Deduction
Taxpayers who do not itemize deductions can take a one-time deduction up to $300.00 for cash gifts made to charitable organizations in calendar year 2020.
Suspension of the 60% Adjusted Gross Income (AGI) Limitation for Individuals’ Charitable Contributions in 2020
Prior to the CARES Act, individuals could deduct charitable contributions only up to 60% of their AGI. For 2020 only, this AGI requirement has been removed, making all cash contributions fully deductible if itemized.
Waiver for 2020 of the Required Minimum Distribution (RMD) for retirement plans, pensions and Section 457 Plans
Applies to IRAs, SEP IRAs, and SIMPLE IRAS in addition to 401(k), 403(b), and Governmental 457(b) plans for both retirement account owners and beneficiaries.
If you have questions about the tax benefits of your donation to Lakemary Center, please contact Paul Rueschhoff, Chief Development Officer, at (913) 594-3032 or firstname.lastname@example.org.
This information is not intended to give professional tax or financial planning advice. Please consult a tax or financial advisor before making any donations to a charitable organization, including Lakemary Center.