April 15, 2020
Dear fellow progressive,
I hope this message finds you well in these uncertain times.
We have received many questions from our supporters over the past few weeks regarding the new charitable giving benefits provided through the CARES Act. I would like to take a minute to share with you just a few of the incentives you can receive by making a tax deductible contribution to The Progressive today.
Did you know that under the CARES Act, there are enhanced charitable giving incentives even for individuals who do not itemize their deductions?
The Act includes a one-time, “above-the-line deduction” (that is, available to taxpayers who do not itemize deductions) for cash contributions of up to $300 made to charitable organizations. The incentive covers only cash contributions made in calendar 2020 and should be claimed on the taxpayer's 2020 Form 1040 which is filed in 2021.
So you may be wondering, under the CARES Act, what are the limitations on tax deduction for charitable contributions made by individuals who itemize their deductions?
It’s easy, the Act increases the limits on charitable deductions made by individuals who itemize their taxes. The current limits for an individual's tax deductions for charitable contributions in cash (60% cap of adjusted gross income) are being suspended for contributions made in 2020, making cash contributions fully (100%) deductible at this crucial time for nonprofits.*
Under the CARES Act, there are also enhanced charitable giving incentives for corporations.
For business owners, the limit on charitable deductions for cash contributions in 2020 is being increased from 10% to 25%. Additionally, the Act increases the limitation on deductions for food donations by corporations in 2020 from 15% to 25%.
From all of us here at The Progressive, thank you! We hope that you and the ones you care about most have been well and are staying safe. This has been a difficult time, for us all, but I am certain that we will get through this, together.
