Tax Benefits of the CARES Act
The new CARES (Coronavirus Aid, Relief, and Economic Security) Act is designed to help you, businesses and nonprofits facing economic hardship during the coronavirus pandemic.
The Law, Explained by a Charitable Planning Attorney
Here are a few key provisions of the CARES Act that may affect you and your charitable goals:
Required Minimum Distributions Suspended
The new law temporarily suspends the requirements for required minimum distributions (RMD) for the 2020 tax year. This probably comes as a relief to many of you who would have had to withdraw from your retirement accounts. Many of our donors use their RMD to make a gift from their IRA or name the American Institute for Cancer Research as a beneficiary.
New Tax Incentives
The CARES Act expands charitable giving incentives and allows taxpayers who take the standard deduction to make up to $300 of charitable contributions to qualified charities this year. You might think that this is a small amount and would not make a difference. But what if all of our donors gave “just” $300? Such support would have a huge impact on those we serve.
For those who do itemize their deductions, the new law allows for cash contributions to qualified charities such as the American Institute for Cancer Research to be deducted up to 100% of your adjusted gross income for the 2020 calendar year. You must elect to take advantage of this new tax incentive when filing your 2020 Federal Income Tax Return.
Your Charitable Goals
We are deeply grateful for your continued kindness and support during this difficult time. Please contact Ann Worley at firstname.lastname@example.org or 800-843-8114 to discuss how your gift can help further our mission.