The Coronavirus Aid, Relief, and Economic Security (CARES) Act and the federal stimulus measures include new benefits to donors making charitable contributions in 2020. Above-the-Line Charitable Deduction
Above-the-Line Charitable Deduction.
For 2020: A $300 above-the-line charitable tax deduction for donors who do not itemize.
– This new provision of the CARES Act allows taxpayers who do not itemize to claim a deduction of up to $300 for qualified charitable contributions.
– A qualified charitable contribution must be made in cash and cannot be made to certain charities, including donor advised funds, supporting organizations, and organizations, such as many non-operating private foundations, that are ordinarily subject to a 30% limitation on charitable deductions. Your gift to Habitat for Humanity of Southern Santa Barbara County is eligible!
Increased Percentage Limitations for Charitable Contributions
For 2020: Donors who do itemize benefit from increased percentage limitations for qualified charitable contributions as follows:
– Donors may elect to deduct up to 100% of their 2020 Adjusted Gross Income (AGI); an increase from 60%.
– Corporations can deduct up to 25% of taxable income; an increase from 10%.
– A qualified contribution is a cash gift made during calendar year 2020. This provision of the CARES Act excludes gifts to donor advised funds and supporting organizations. The 30% limitation applicable to private non-operating foundations was not changed.
– Lastly, the 15% limitation for contributions of food would be increased to 25% for any charitable contributions of food during 2020.
For questions about making a gift to Habitat Santa Barbara, contact Elizabeth Baker, Director of Development and Communications firstname.lastname@example.org.