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CARES Act Expands Tax Deductions for Charitable Giving

Donors can stretch their gifts to institutions struggling due to COVID-19

The recently enacted Coronavirus Aid, Relief and Economic Stability (CARES) Act contains many provisions intended to bring relief to those affected by the crisis. Included are enhanced charitable giving incentives, designed to encourage philanthropy during a time when many nonprofits are experiencing significant concern over a decline.

The incentives, which apply only to cash gifts to qualified private nonprofit institutions and are only for this year, are the following:

  • Taxpayers who take the standard deduction and do not itemize can take an “above-the-line” deduction of up to $300 for cash gifts made in 2020.
  • For taxpayers who itemize their deductions, the CARES Act temporarily lifts the existing cap on annual contributions, raising it from 60% of adjusted gross income to 100%.
  • For corporations, the legislation raises the annual limit from 10% of the corporation’s taxable income to 25%.

The CARES Act giving incentives create an opportunity for donors to amplify their philanthropy in 2020 at a time when the nonprofit sector requires it the most as they strive to meet the needs of many during this pandemic. For more information on charitable giving incentives, or how you can support innovation, research, community service and patient care, particularly during these challenging times, at the University of Miami Miller School of Medicine/UHealth System, email us here.