The CARES Act and Charitable Giving
What is the CARES Act?
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) includes provisions to facilitate charitable giving to nonprofits like MSI United States. Our work is more important than ever, because the need for reproductive healthcare doesn’t stop during a pandemic. The CARES Act could help you increase your impact for the women and girls we serve in 2021.
To help you support important causes like reproductive choice in a way that benefits you, we’re sharing a few key points.
How it works
New Deduction Available: Taxpayers can deduct up to $300 per individual ($600 for a married couple) from their 2020 and 2021 taxes. This is only available to people who do not itemize their deductions (take the standard deduction). This will reduce a donor’s adjusted gross income (AGI), reducing their taxable income.
New Charitable Deduction Limits: Individuals that itemize can deduct much greater amounts of their contributions in 2020. Individuals can elect to deduct donations up to 100% of their 2020 AGI (up from 60% previously). The new deduction is for gifts that go to nonprofits like MSI United States. The old deduction rules apply only to gifts to private foundations.
Donor Advised Funds: Donations made to Donor Advised Funds do not qualify for these new deductions. Gifts must be made directly to nonprofits like MSI United States to qualify.
Want to know more?
Have questions about how to take advantage of the CARES Act in your charitable giving? Please contact Jim Klein at firstname.lastname@example.org or by phone at (202) 803-7018.
This information is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor.