CARES Act

The CARES Act, which was signed into law on March 27, 2020, includes provisions affecting both individual and corporate donors. These provisions include the following: 

• New $300 Deduction for Qualified Charitable Donations* 
  Individuals who take the standard deduction can claim an above-the-line tax deduction for cash donations to qualified charitable organizations, up to $300. 

• 60% of AGI Limit Suspended for 2020
  For the 2020 tax year, individuals can deduct any cash contributions made to qualified charitable organizations, up to 100% of their adjusted gross income (AGI). Deductions for cash donations were previously limited to 60% of the taxpayer’s AGI. 
   
• Corporations’ 10% Limit Increased to 25% for 2020
  For the 2020 tax year, corporations can deduct up to 25% of the taxpayer’s taxable income for any cash contributions made to qualified charitable organizations. Deductions for cash donations were previously limited to 10% of the taxpayer’s taxable income.   

Donor-Advised Funds Not Affected 
Deduction limitations for charitable gifts to Donor Advised Funds, private non-operating foundations, and supporting organizations were not changed under the CARES Act. The changes to the $300 universal charitable deduction and the suspension of the AGI limit do not apply to contributions made to a Donor Advised Fund.
 
We Can Help
Need help determining how to support local and national relief efforts related to the COVID-19 pandemic? We are here for you. Please contact Executive Director Cory J. Howat (chowat@ccfnola.org) or CFO Regina Templet (rtemplet@ccfnola.org). 

*The $300 limit applies to the tax-filing unit. For example, married taxpayers who file a joint return and do not elect to itemize deductions are allowed to deduct up to a total of $300 in qualified charitable contributions on the joint return.