CARES Act

The CARES Act, signed into law on March 27, includes provisions that affect both individual and corporate donors. Specifically: 

60% of AGI Limit Suspended for 2020

For the 2020 tax year, individuals can deduct any cash contributions made to qualified charitable organizations, up to 100% of their adjusted gross income (AGI). Deductions for cash donations were previously limited to 60% of the taxpayer’s AGI. 

Corporations’ 10% Limit Increased to 25% for 2020

For the 2020 tax year, corporations can deduct up to 25% of the taxpayer’s taxable income for any cash contributions made to qualified charitable organizations. Deductions for cash donations were previously limited to 10% of the taxpayer’s taxable income.  

New $300 Deduction for Qualified Charitable Donations 

Individuals who take the standard deduction can claim an above-the-line tax deduction for cash donations to qualified charitable organizations, up to $300. 

Donor-Advised Funds Not Affected 

Deduction limitations for charitable gifts to donor-advised funds, private non-operating foundations, and supporting organizations were not changed under the CARES Act. 

We Can Help

If you need help determining how to support Phoebe’s efforts related to the COVID-19 pandemic, don’t hesitate to call. Our charitable experts are available at 229-312-4483 (checking voice mail) or phoebefoundation@phoebehealth.com


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