CARES Act and 2020 Charitable Giving Incentives

The Coronavirus Aid, Relief and Economic Security Act, known as the CARES Act, was signed into law in March of this year and includes important tax incentives that will expire on December 31, 2020:

  • If you do not itemize: Your CASH contributions to public charities such as The Catholic Foundation¬†are deductible “above the line” up to $300 (a dollar for dollar reduction of your taxable income).
  • If you itemize: Your CASH contributions to public charities such as The Catholic Foundation can be deducted up to 100% of your adjusted gross income (AGI) (an increase from 60%).
  • Corporations: Corporate contributions of CASH to public charities such as The Catholic Foundation are deductible up to 25% of taxable income (an increase from 10%).
  • No Required Minimum Distribution (RMD) requirement: Individuals who would have otherwise been required to take a RMD from their retirement plan in 2020 are not required to do so. Retirement assets are still an excellent source for charitable giving¬†during your lifetime or as part of your estate plan.

CARES Act Website