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CARES Act Tax Benefits

The CARES Act includes changes to charitable income tax deductions that may make it advantageous for you to pledge or increase support to ZERO TO THREE.

Below are some key takeaways from the CARES Act:

  • For those who itemize their deductions (do not claim the standard deduction), individual donors’ limits on the percent of AGI (adjusted gross income) for charitable deductions will be increased or eliminated. This could provide significant tax savings if you do not claim the standard deduction/already itemize your charitable contributions. For individuals, the 50% AGI limitation would be raised to 100% of AGI for 2020.
  • The Act waved the requirement for retirees to take a RMD from their IRAs in 2020; as in years past, retirees can choose to make a charitable rollover from their IRA.
  • For those individuals who do not itemize (claim the standard deduction), the new law allows them to take up to a $300 charitable income tax deduction for cash donations made in 2020. The $300 tax deduction is in addition to the standard deduction.

For more information on how this might apply to you and your charitable giving, we urge you to contact your tax advisor. ZERO TO THREE and its staff are not professional tax advisors; we are glad to share the above information with you but also encourage you to contact your financial/tax advisor or accountant to determine what these new provisions might mean for you.

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    Ryan Sabot

    Senior Manager, Individual & Major Gifts