With the approval of the $2 trillion federal stimulus bill (Coronavirus Aid, Relief, and Economic Security Act or “CARES” Act) comes a wide variety of support, some of which supports nonprofit organizations.
Did you know that the CARES Act also changes the way that charitable giving tax deductions will work in 2020?
Here are the changes you’ll see with the passage of this legislation:
- If you choose not to itemize your deductions when filing, charitable contributions of up to $300 can be directly deducted when calculating your adjusted gross income.
- If you do choose to itemize your deductions, the CARES Act will temporarily lift the limits of deductible charitable giving for 2020—meaning that ALL individual charitable giving can be deducted from adjusted gross income (and excess contributions can be carried over for the next five years).
Keep this in mind when considering your nonprofit giving this year. Whether you’re supporting organizations and companies providing COVID-19 emergency services or groups like the Forest Park Conservancy and many others that are continuing to work to protect Oregon’s environment or both, we hope these deductions will make it easier to give.