By Richard A. Foot, Member, Endowment Committee
On Friday, March 27, the US Congress passed and the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 trillion economic stimulus package legislated to provide immediate relief for nonprofits, businesses, individuals and state and local governments.
The CARES Act creates a new above-the-line deduction (universal or non-itemizer deduction that applies to all taxpayers) for total charitable contributions of up to $300. The incentive applies to cash contributions made in 2020 and can be claimed on tax forms next year. The law also lifts the existing cap on annual contributions for those who itemize, raising it from 60 percent of adjusted gross income to 100 percent. For corporations, the law raises the annual limit from 10 percent to 25 percent. Food donations from corporations would be available to 25 percent, up from the current 15 percent cap. Donations to donor-advised funds and supporting organizations are not eligible for this deduction.
Should you be interested in learning more about the benefits of the CARES Act on your charitable giving, please contact Tom Clingman, Vice President of Social Responsibility, YMCA of Frederick County, at 301-663-5131 or email@example.com . The YMCA recommends you consult your tax or financial advisor regarding your specific situation.