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CARES Act Provides Incentives for Giving

CARES Act Provides Incentives for Giving
May 6, 2020 MOM NewsPandemic

You may have heard about the CARES Act and its direct financial assistance for small businesses, nonprofits and employees. The CARES Act includes a number of other important provisions, including ones that encourage charitable giving from both individuals and corporations. If you were considering a gift to MOM or other charitable organizations this year, we'd like to share these incentives for giving with you.

  • Above-the-line charitable contribution deduction. Under this new charitable giving incentive, individuals can deduct up to $300 of donations, even if they don’t itemize on their tax return. This means that a lot more people can receive a tax benefit from making charitable contributions.
  • Elimination of cash donation cap for individuals. Individuals can now contribute 100% of their adjusted gross income (AGI) in 2020 to public charities if they want. The previous limit was 60% of AGI.
  • Higher cap on corporate donations. Corporations can now donate up to 25% of their taxable income as a charitable contribution in 2020, up from 10%.
  • Higher cap on donations of food inventory. During 2020, corporations may donate up to 25% of taxable income for food inventory, up from 15%.

Thank you for your continued support.

Information courtesy of Scholz Nonprofit Law
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