The CARES Act Encourages Charitable Giving

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The CARES Act Encourages Charitable Giving

by Lucienne Driehaus, Donor Relations Officer


Recently, the federal government passed the monumental CARES (Coronavirus Aid, Relief and Economic Security) Act in small part to help encourage continued giving to non-profits during COVID-19.  It’s a lengthy piece of legislation, and we wanted to share a few of the key takeaways of how the CARES Act can help you help St. Joseph Home.

All taxpayers can take a charitable deduction of up to $300, even if you don’t itemize.  Per “tax-filing unit”: if married and filing jointly, the deduction is $300 total; if married and filing separately, it’s $300 each.

You can now make cash contributions to qualified non-profits like St. Joseph Home to be deducted up to 100% of your Adjusted Gross Income (AGI) for 2020!

In 2020, if you deduct 30% of AGI in long-term appreciated property gifts and elect the 100% of AGI limit for qualified cash contributions, you can deduct up to 70% of AGI for qualified cash gifts – a total deduction of up to 100% of AGI.  If you use all available deductions for qualified cash gifts, you’ll pay no federal income tax in 2020!

The Required Minimum Distributions (RMD) from your IRA are temporarily suspended for the 2020 tax year.  Many of our donors who are 70 ½ or older make gifts to us from their IRAs.

Visit our Planned Giving page for more details on how to make a lasting impact with your legacy.