The CARES Act and Charitable Giving

In response to the COVID-19 crisis, Congress passed the Coronavirus Aid Relief and Economic Securities Act (CARES Act). Included in the bill are provisions that increase the tax-deductibility of donations to charities from individuals and corporations to help encourage continued support of non-profit organizations like AFSP.

Some of the key points included in the bill regarding charitable giving include:

Above-the-Line Deduction for Taxpayers Using the Standard Deduction

Individual taxpayers who don't itemize can deduct charitable contributions up to $300 from their 2020 taxes. This incentive applies to cash contributions and allows you to claim the $300 deduction even if you aren't itemizing and therefore lower your overall taxes.

Increased Deductibility on Gifts Made By Individuals

The existing cap on itemized annual contributions has been lifted for 2020. For cash donations made in 2020, you can now elect to deduct up to 100% of your Adjusted Gross Income (increased from 60%).

Also, required minimum distributions from an IRA have been waived for 2020.

Increased Deductibility on Gifts Made By Corporations

Qualifying corporations can now deduct up to 25% of their charitable contributions (previously corporations could only deduct 10% of their charitable contributions).

We recommend consulting with a qualified financial advisor to determine the best gifting strategy for your specific circumstances. To learn more about the CARES Act and Charitable Giving, please visit:

Forbes: CARES Act Rewards Generosity With Generous Tax Deductions

Fidelity: What the CARES ACT Means for Your Charitable Giving