During difficult and uncertain times, it is not uncommon to feel as though there is little you can do to make things better. The truth is that many nonprofit organizations, including Raise the Future, need your support now more than ever. Many traditional fundraising events have been postponed or canceled due to stay at home orders and social distancing regulations; as a result, nonprofits are trying to find ways to fill in these significant gaps in funding so that they can continue providing critical services to individuals that depend on them. Times like these also remind us of the importance of human connection. The shared experience of social distancing during COVID-19 gives the general public insight into the kind of isolation and loneliness that many of the youth and families we serve feel on a frequent basis.
Although the way we do our work may look different than it did before the coronavirus outbreak, our commitment to youth and families remains unchanged – and they know they can count on Raise the Future continuing to show up for them. If you are looking for ways to help, please consider supporting our work with a gift today. Now is an excellent time to make a donation not only because of the increased need for support, but also because doing so will benefit you as the donor.
There is a new financial incentive to give generously to qualifying US charities, including Raise the Future. The new universal tax break for charitable donations was included in the final $2 trillion COVID-19 stimulus package signed into law and will go into effect starting with the 2020 tax year.
The measure grants taxpayers an above-the-line deduction for up to $300 in charitable donations made in 2020. For example, if you take the standard deduction and give $300 to charity, you will get a $300 tax break in addition to the standard deduction. Here is a brief summary of how the tax benefits work:
Standard Deduction
For people who take the standard deduction, the CARES ACT will allow you to take a tax deduction for contributions made to qualified charitable entities up to $300 per year starting in 2020 – this deduction is “above-the-line.” The 2020 Standard deduction is $12,400 for individuals and $24,800 for married couples filing jointly. Therefore, any donation to qualifying charities of up to $300 will be added to the standard rate of deduction.
Itemized Deduction
For people who file for itemized deductions, the CARES ACT allows you to take a tax deduction of up to 100% of your Adjusted Gross Income (AGI) for contributions to qualifying charities starting in 2020. The new law temporarily lifts the limits on charitable giving from 60% of a taxpayer’s AGI to 100% for 2020.
Corporate Donations
For corporate donors, the CARES ACT allows an entity to take a tax deduction of up to 25% of their Adjusted Tax Income for contributions to qualifying charities starting in 2020. The new law temporarily lifts the limits from 10% of adjusted taxable income to 25% for 2020.
LEARN MORE:
- New Universal Tax Break For Charitable Donations Included In Final $2 Trillion COVID-19 Stimulus Package (Forbes)
- How the New $300 ‘Universal’ Deduction Works (The Chronicle of Philanthropy)
- 5 New Rules for Charitable Giving (U.S. News & World Report)
This information is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.
This article has been updated since it was originally posted to reflect The Adoption Exchange's new name: Raise the Future.