The CARES Act & Nonprofits: What You Need to Know

The CARES law now gives $300 annual deduction for charitable giving (no itemization needed). Previously, individuals were only able to deduct contributions if they itemized deductions on their personal returns. As a result of the 2017 tax law changes, the number of individuals who did so dramatically declined. CARES will allow for this deduction regardless of whether they will be itemizing their deductions, but only for the 2020 tax year. For those that do still itemize, CARES provides an increase in the Adjusted Gross Income cap from 60% to 100%. On the corporate side, the cap is raised from the historical 10% to 25%.

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