2020 has been… different… but, that means your year-end giving message to donors can be different, too. The recent Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Tax Cuts & Jobs Act of 2017 have created opportunities for your donors.
By giving to your endowment, donors can leverage the CARES Act in a couple of ways:
$300 Universal Charitable Deduction Incentive: Individuals who do not itemize their taxes can deduct a charitable cash contribution up to $300 from their gross income.
For 2020 only: Individuals who do itemize can deduct cash contributions up to 100% of their adjusted gross income (AGI). Example: If a donor’s AGI is $100,000, they can deduct $100,000 in charitable contributions and wipe out income tax liability entirely.
And of course, we can’t forget the Tax Cuts & Jobs Act of 2017. This requires a minimum of $12,400 for individuals and $24,800 for couples filing jointly to itemize donations. For your more strategic donors, this may present an opportunity to bundle larger donations to meet these minimums and take the maximum tax deduction.
To help you better talk to your donors and inspire greater year-end giving, we have compiled these tips and more in our "Did You Know?" resource. Be sure to include them in your newsletters, emails, websites and social media to inspire generous giving this holiday season.