CARES Act Increases Deductions for Charitable Contributions

CARES Act Increases Deductions for Charitable Contributions

To encourage more charitable giving during this challenging time, the recently enacted government stimulus bill (the “CARES Act”) provides some additional tax relief for donors. This makes it easier to give and save at the same time. 

  • Expanded charitable giving incentive – The CARES Act creates a new partial above-the-line deduction for cash contributions up to $300 to certain charitable organizations for taxpayers that elect not to itemize deductions.

  • The 60 percent Adjusted Gross Income (AGI) limits do not apply to individuals for contributions made in cash during 2020.

  • The limit for contributions from corporations increase from 10 percent of taxable income to 25 percent. These changes would not apply to contributions to a supporting organization or a Donor Advised Fund.