CARES ACT 2020 Impact on your Giving

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by Congress and signed into law on March 27th, 2020. Learn more about how the CARES Act impacts charitable giving.

Charitable deductions

Under the CARES Act, an individual who does not elect to itemize his or her deductions may take a qualified charitable contribution deduction of up to $300 against their Adjusted Gross Income (AGI) in 2020. This charitable deduction may not be applied to contributions to a donor advised fund.

Modification of limitations on cash contributions

Prior to the passage of the CARES Act, individuals could take a charitable contribution deduction of up to 60% of their Adjusted Gross Income. The CARES Act temporarily suspends the AGI limitation allowing individual taxpayers to take a charitable contribution deduction for cash contributions made in 2020 so long as contributions do not exceed the excess of the individual’s contribution base over the amount of all other charitable contributions allowed as a deduction for the contribution year. Any excess is carried forward as a charitable contribution in each of the succeeding five years. Contributions to donor advised funds are not eligible.

Qualified Charitable Distributions from IRAs

Individuals who turned 70 ½ in 2019 or earlier, or who turned 72 in 2020 or later, can still donate up to $100,000 to a qualified charity directly from their IRA without taking the distribution into taxable income, but with the passage of the CARES Act, individuals are not required to take their Required Minimum Distribution from their IRA in 2020.

We encourage you to consult with your tax advisor or financial planner to learn more about how the CARES Act affects your personal tax liabilities.