You may have heard about the CARES Act, the economic relief legislation recently passed in Congress. It includes a lot of different ways to help those most in need. The nonprofit sector as a whole, including Delta, is also trying to best understand how to navigate these uncertain times. The CARES Act includes a handful of incentives for donors to support the nonprofits making an impact in their communities. If you are considering how you can use these incentives to help nonprofits like Delta who are struggling throughout this economic uncertainty, here a few key takeaways from the Act:
A universal charitable deduction.
Normally, in order to claim a tax deduction for contributions, donors need to itemize their taxes instead of claiming the standard deduction. For the tax year 2020 (to be filed in 2021), donors who normally claim the standard deduction can also claim a charitable gift deduction of up to $300 for donations made to eligible nonprofits such as Delta Institute. Consider that a gift of $300 to Delta can help underwrite the planting and long-term care for two hybrid poplar trees–or the facilitation of four community meetings which can lead to the redevelopment of vacant, polluted land in communities.
Suspended AGI limitation for donors who itemize.
Prior to the CARES Act, individuals who make cash contributions to public charities may deduct up to 60% of their adjusted gross income (AGI). The CARES Act temporarily suspends the this limitation for qualifying contributions, instead permitting donors to claim deductions to the extent such donations do not exceed the excess of the donors’ individual contribution base over the amount of all other charitable contributions.
There are many other ways you can donate now to support your favorite charities who are struggling while also helping reduce your tax burden for next year, such as by donating gifts of stock or by making a qualified charitable distribution from your IRA.
To discuss all your giving options, please contact Delta’s Director of Development and Communications, Sidney Freitag-Fey, at 312-651-4344 or by email at firstname.lastname@example.org. Please don’t hesitate to reach out to us as a resource as you discuss the options above with your accountant or financial planner.