The President has signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) into law. Here are some of the provisions that will impact charitable giving and apply to tax years beginning in 2020:
The law includes an above-the-line charitable deduction of up to $300 per taxpayer for eligible individuals, defined as non-itemizers. The above-the-line deduction will give nonprofit supporters who normally do not receive tax benefits, incentive to make gifts to Nine Network this year.
This year, taxpayers may deduct gifts of cash when given to a public charity like the Nine Network and deduct them up to their contribution base—100% of their adjusted gross income (AGI). Gifts of cash made to public charities are normally limited to 60% of AGI. Deduction limits are lower for gifts made to private foundations (30% of AGI for cash gifts).
The universal deduction is limited to gifts of cash donated to a qualified not-forprofit organization like the Nine Network.
The universal deduction is not available for gifts made to donor advised funds (DAFs) or supporting organizations (SOs).
Any deductions that cannot be taken in a single year may be carried forward an additional five years.