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n 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The $2 trillion economic stimulus law was intended to provide immediate relief for individuals, nonprofits, businesses, and state and local governments. It also included several changes to charitable giving provisions that have now been extended into 2021.

Provisions that Impact Charitable Giving

The measure increases the deduction cap for cash contributions for itemizers to 100 percent of adjusted gross income (AGI). The incentive now also applies to donations made in 2021. Corporations can deduct charitable contributions up to 25 percent of taxable income, up from 10 percent previously.

The increased deduction limits under the CARES Act relate to cash contributions only—donations of stock, real estate, or any non-cash items do not qualify—and must be made directly to a service-providing public charity. Gifts to private foundations and donor-advised funds (even though donor-advised funds are administered by a public charity) do not qualify.

Are you thinking about how to make your charitable giving more strategic and impactful? We’re here to help as your partners in philanthropy! Reach out to our Philanthropic Strategy team to learn more about philanthropic giving plans, the use of complex assets for giving, and legacy planning. CLICK TO LEARN MORE

Margita Blattner
Sr. Director of Philanthropic Strategy