CARES Act

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On March 27, 2020, President Trump signed The Coronavirus Aid, Relief, & Economic Security (CARES) Act. This $2 trillion comprehensive legislation aids several aspects of COVID-19 recovery support for individuals, nonprofit agencies and businesses across the county. As part of this legislation, there are several charitable incentives available to donors.

For Individuals:

  • Non-itemizers can take advantage of a new above-the-line deduction for charitable contributions up to $300. The incentive applies to cash contributions made in 2020 and can be claimed on tax forms next year (Section 2204).
  • 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. It is important to note a donor who uses the entire deduction would pay no federal income tax in 2020.

For Corporations:

  • The law raises the annual limit from 10 to 25 percent. Food donations from corporations would be available to 25 percent, up from the current 15 (Section 2205).              

It is important to note these benefits do not apply to gifts to donor advised funds, supporting organizations or private foundations. We encourage you to discuss any tax decisions with your team of professional advisors.

We hope this information provides an additional reason for individuals to support nonprofit organizations serving Hancock County which are strongly effected by COVID-19 . If you have any questions about supporting the Community Emergency Support Fund or the CARES Act please contact our Chief Donor Engagement Officer Nick Kulik