27 Apr Coronavirus Aid, Relief, and Economic Security (CARES) Act
In 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.
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Sr. Director of Philanthropic Strategy