STAR, Inc., Lighting the Way... Since 1952

The Coronavirus Aid, Relief, and Economic Security (CARES) Act
WHAT DOES THIS MEAN FOR YOUR CHARITABLE GIVING?
INDIVIDUAL DONORS:
- All taxpayers (both those who itemize and those who use standard deduction) can deduct $300 in charitable giving to public nonprofits in 2020
- Prior to the CARES Act, those who used standard deduction could not deduct any charitable giving
- For those who itemize their taxes (which accounts for nearly all taxpayers with an income of $200,000+) the CARES Act significantly raises the amount of charitable giving deductible from 60% of filers’ adjusted gross income (AGI) to 100% of AGI
- Gifts to donor-advised funds and private foundations do not receive the revised deductible under this provision
CORPORATE DONORS:
- The CARES Act raises the amount of charitable giving that corporations can deduct from 10% of taxable income to 25% of taxable income
- The bill also raises the amount of in-kind donations of food that corporations can deduct from 15% of taxable income to 25% of taxable income