The CARES Act: Charitable Giving Incentives
On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law to provide financial relief for businesses and individuals negatively impacted by the COVID-19 pandemic. As part of this impactful legislation, a number of provisions were included to ensure the continued generosity and philanthropic support for nonprofit organizations, like Williamson College of the Trades. These provisions were extended on December 27, 2020 for the calendar year of 2021.
Individuals and corporate partners can benefit from the CARES Act in the following ways:
- The new law allows all taxpayers to take a charitable deduction of up to $300 ($600 per couple), even if you do not itemize. For those who do itemize their deductions, the new law allows for cash contributions to qualified charities such as ours to be deducted up to 100% of your adjusted gross income for the 2020 calendar year as compared to the normal 60%.
- The new law temporarily suspends the requirements for required minimum distributions (RMD) for the 2020 and 2021 tax year. Many of our donors use their RMD to make a gift from their IRA. If you are 70½ or older, you can still make a gift from your IRA or name us as a beneficiary.
- Additionally, the CARES Act increased the cash contribution limit for corporations from 10% to 25% in 2020 and 2021. Qualified cash contributions in excess of the 25% limit can be carried forward for up to five (5) years under the usual limits.
Note: The following information above provides an overview of the key parts of the plan to help get charities started, but it is not intended to provide legal advice. Please consider discussing them with your professional advisors to determine their applicability to your individual tax situation.
Please contact the Office of Institutional Advancement at firstname.lastname@example.org if you have any questions about the CARES Act charitable provisions or if you need additional information.
Although our world has changed over the last several months, our mission of preparing qualified young men to be respected leaders and productive members of society has not changed and needs your continued support. Please consider making a gift to our Williamson students.