The coronavirus stimulus package has been signed into law on March 27th, 2020. We want to use this opportunity to update our donors on provisions that are relevant to charitable deductions.
- The Bill creates a temporary universal charitable deduction up to $300 for cash gifts for the 2020 tax year. This means that you would not have to itemize to claim those deductions. This provision excludes gifts into donor-advised funds, private foundations, and 509(a)(3) supporting organizations.
- The bill also temporarily lifts the existing cap on annual contributions for those who itemize and modifies limits for charitable contributions from corporations. This provision excludes gifts into donor-advised funds, private foundations, and 509(a)(3) supporting organizations as well.
- For individuals, the bill raises the annual limit from 60 percent of adjusted gross income (AGI) to 100 percent for 2020.
- For corporations, the 10 percent limitation is increased to 25 percent of taxable income.
- Individuals and corporations will be able to carry forward the unused deduction to the next year.
As noted earlier, our staff has been working remotely while continuing to serve our donors and communities. Please reach out to any of them (contact information below) with your questions.
We know together we will get through this difficult time.