Pet Recovery Plan
01/05/2022New Charitable Rules Incentivize Generosity During COVID-19
Part of the CARES Act acknowledges and incentives the desire of individuals, foundations, and businesses to support non-profit organizations during these difficult economic times.
Donor can enjoy new added tax benefits for aligning their dollars with their values right now.
Individual donors should know there is now no limit to the deductions you can take for charitable contributions if you itemize (list out) your contributions. Previously, you could only deduct up to a maximum of 60% of your adjusted gross income (AGI) via charitable contributions. This change applies only to cash gifts made to charitable organizations qualified by the IRS.
Also approved was the deduction up to $300 in charitable donations from people’s taxable income, without itemization when they file their 2020 tax. The 2017 change to tax code meant a significant increase in the standard deduction for individuals and many people learned they did not or will not receive any direct tax benefit for their 2019 charitable contributions thus impacting charitable donations last year. But NOW donors can receive a benefit for giving.
Corporations or companies can receive higher tax break for their charitable giving.
For corporations looking to extend their charitable giving, the CARES Act raises the annual cash gift limit from 10% to 25% of corporate taxable income. The goal is to directly deploy funds to nonprofits on the ground that is in need of rapid support.
In this historical moment, many small and midsized charities’, like AWA, surviving the pandemic or better sustaining while doing their mission’s work are dependent on how donors and companies react. Our community’s nonprofit landscape will undoubtedly be defined by whether or not those able to contribute are giving.
