In 2020, Congress passed the CARES (Coronavirus Aid, Relief and Economic Security) Act. The bill set forth temporary changes to encourage charitable giving during this challenging period. These changes end on December 31, 2021!
Donors can claim charitable income tax deductions for certain types of contributions made to qualifying charitable organizations like IECF. There are two specific types of donors who can make charitable gifts under the CARES Act: donors who itemize on their federal taxes, and donors who are non-itemizers and who take the standard deduction.
For Donors Who Itemize on Their Federal Taxes
- Donor(s) can make a cash gift (cash, check, or credit card) to a qualified charity and may receive a charitable deduction on their federal taxes up to 100% of their Adjusted Gross Income (AGI).
Remember: The cash gift cannot be directed to a Donor Advised Fund (DAF), a supporting organization, charitable remainder trust, and certain types of private foundations; these do not qualify for this increased ability to offset adjusted gross income up to 100% with a charitable deduction.
For Donors who are non-itemizers and who take the standard deduction
- Donor(s) can make a cash gift of up to $300 to a public charity and use it as a charitable deduction (filing as single) on their federal income tax.
- For joint-filers (married couples) they can make a gift up to $600 and receive a charitable deduction for their gift.
Remember: The cash gift cannot be directed to a Donor Advised Fund (DAF), a supporting organization, charitable remainder trust, and certain types of private foundations; these do not qualify for this special “above the line” charitable deduction.
This “above the line charitable deduction” enables the majority of taxpayers who take the standard deduction to also benefit from their charitable gifts of cash.
Help celebrate our 80th Anniversary by making a charitable year-end gift to IECF or your favorite charity!
For more information or assistance on these and other gifting options, please contact the Charitable Giving Department at 951-241-7777.
