Have you shared with your supporters what the Coronavirus Aid, Relief, and Economic Security (CARES) Act can do for them?
One of the most significant steps the federal government has taken amidst the global pandemic are the provisions made in the
Coronavirus Aid, Relief, and Economic Security (CARES) Act
that provide significant tax incentives to stimulate increased charitable giving to non-profit organizations.
If you have not shared news of how your supporters' gifts can go further, we have included a sample template for you to email or mail to your supporters.
The letter outlines how their charitable giving can be maximized:
- Gifts up to $300 are now 100% deductible. Until this bill passed, only those who itemized charitable gifts were able to receive a charitable deduction. Beginning now, individuals can deduct up to $300 whether or not they itemize their deductions. This deduction can be used for contributions of cash, credit card or checks (does not apply to gifts of stocks).
- Deduction for gifts above $300 was raised up to 100%. Until this bill passed, individuals could deduct up to 60% of their adjusted gross income (AGI) for charitable deductions of cash (does not include gifts of stocks). The stimulus package allows individuals to deduct up to 100% of their AGI for 2020. Supporters who use this provision must inform the IRS. This is helpful for individuals making large gift donations and could allow a person to make a charitable gift while eliminating the tax burden. Any contributions in excess of total AGI may be carried forward for up to five additional years.
- Additionally, corporations have greater incentives to make charitable gifts. Typically giving is limited to 10% of a corporation's taxable income. The limit has been increased to 25% of the taxable income, making your charitable gifts even more effective.