To encourage more charitable giving in 2020, the recently enacted Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) provides some additional tax relief for donors:
- The CARES Act allows taxpayers who don’t itemize to donate up to $300 cash to charity and reduce their taxable income by the same amount.
- The CARES Act allows taxpayers to donate their entire Adjusted Gross Income (AGI) in cash to charity and deduct it on their 2020 tax return.
- Rather than making a large cash gift, you may find it more beneficial to donate appreciated securities and use your cash to repurchase the security at a lower basis. Such a gift costs less because they paid less for the security. You can deduct the fair market value of the security and can eliminate capital gain from your portfolio.
- To make a gift from your Donor Advised Fund, please use the link at the bottom of our How to Give