Year-End Charitable Giving | LIRS

Year-End Charitable Giving

Published On: Donate

Get in touch with us

Looking for a year-end way to make a big impact in the lives of refugees, asylum seekers, and immigrants? To make a gift, please contact us directly at giving@lirs.org or 877-291-7061

DID YOU KNOW...?

On March 27, 2020, the Cares Act was modified to address the challenges caused by the COVID-19 pandemic.  This important revision helps nonprofits who have been affected by the pandemic. Everyone can take a deduction up to $300 even if you do not itemize your return. This affects only the 2020 tax return.

Here is what you need to know:

  • For those who itemize deductions, an individual can deduct charitable contributions up to 100% of their adjusted gross income (AGI). This amount is up 60% over 2019 allowances.
    • The donation must be cash and received in the current year.
    • The charity must be registered as a 501(c)(3).
    • There is a limit of 40% of contributions to donor advised funds, private foundations and supporting organizations.
  • For individuals who take the standard deduction, the ruling allows for a $300 charitable contribution to their AGI. If filing married and jointly, the deduction is still limited to $300.
  • If your 2020 donations exceed the AGI limit, cash donations may be carried forward but are subject to the 60% AGI limit in the following 5 years.

We recommend that you consult your tax advisor for additional information on the Cares Act allowances.

Corporate charitable gifts 

Normally, deductions for charitable contributions by C corporations are limited to 10% of taxable income. For contributions made in 2020, the CARES Act increased the deduction ceiling to 25% of taxable income for tax years beginning in 2020.

Leave a Comment

Newsletter Sign Up
Stay up to date with everything going on at LIRS.
  • This field is for validation purposes and should be left unchanged.

DONATE TODAY

Offer a warm welcome to refugee children and families today!