The Coronavirus Aid, Relief, and Economic Security (CARES) Act helps counter the effects COVID-19 has had on our economy by making temporary changes to tax provisions. Whether you are itemizing or taking the standard deduction, the CARES Act could help alleviate some of your tax burden as you help those in need. Here’s how the bill could impact your taxes in 2020:
Itemizing deductions?
In 2020, taxpayers can get a charitable contribution deduction for 100% (previously capped at 60%) of their adjusted gross income for cash donations to nonprofit organizations.
Taking the standard deduction?
In 2020, taxpayers can write off up $300 in cash donations to nonprofit organizations.
How and where can you make a difference? Taxpayers must use cash donations to support public charities in order for these incentives to work, which excludes donor advised funds, but includes cash donations to all other funds at the Oklahoma City Community Foundation, such as charitable organization endowment funds and scholarship funds.
Talk to your financial advisor today to learn how the CARES Act could help you this giving season! If you have questions, contact Joe Carter at (405) 606-2914.
Looking for an advanced giving option? Donor advised funds continue to be great tools!
If we ever had any doubt about the effectiveness of a donor advised fund, 2020 helped put that to rest. In the face of a terrible economic downturn, these charitable savings accounts saw a big increase in grants to nonprofits throughout this pandemic-riddled year. The Community Foundation can help those who are interested establish their own donor advised fund and capitalize on its numerous benefits.
who are interested establish their own donor advised fund and capitalize on its numerous benefits.
Contact Joe Carter today at (405) 606-2914 to create your own donor advised fund and begin – or continue – supporting the charitable organizations or areas that mean the most to you!
“Donor advised funds allow you to advise on grants as well as make decisions on how to support organizations after your death. They are an excellent tool for income tax and estate planning!” – Carla Pickrell
