The CARES act includes provisions to provide tax relief to donors who give to charities. Eastern Mennonite School's COVID-19 Aid Fund provides tuition support to families impacted by job changes and other school needs. Learn about the tax benefits you receive for giving as a result of the CARES act.
- Universal Charitable Deduction — For 2020, creates an above-the-line charitable deduction for non-itemizers, for cash gifts only, capped at $300, excluding gifts into donor-advised funds.
- Suspended Adjusted Gross Income Limits — For 2020, suspends current AGI limits for charitable deductions for cash gifts made by individuals and businesses. This provision excludes gifts into donor-advised funds.
- Individuals: Total charitable contributions can be deducted up to 100% of a donor's adjusted gross income (had been up to 60%).
- Corporations: Charitable contributions can be deducted up to 25% of taxable income (had been up to 10%).
- Individual Financial Support — Direct payments of $1,200/taxpayer plus $500/child will begin going out shortly. Lesser amounts to those individuals making between $75K and $99K/year and couples earning between $150K and $198K/year
Information adapted from a summary sent by the Curtis Group of the bill and its potential impact on nonprofits.