CARES Act

CHARITABLE GIVING INFORMATION

The Coronavirus Aid, Relief, and Economic Security Act, the “CARES Act” (hereinafter, “the Act”), passed on March 27, 2020, has been extended through December 31, 2021. The Act contains a few provisions that may have an effect on charitable giving.

FOR INDIVIDUALS

The CARES Act allows individuals who itemize their deductions in 2021 to claim 100% of their Adjusted Gross Income. Applying to cash contributions only, the CARES Act provides donors with the opportunity to sell appreciated securities and donate the cash to charitable organizations. Any giving beyond this 100% limitation may be carried over and used in the next five years.

For individuals who do not itemize their tax deductions, the legislation for 2021 extends the $300 universal charitable deduction implemented in the Cares Act. It also allows twice the deduction for couples who file their tax return jointly. As a result, a couple in the 32% marginal tax bracket can save $192 in federal income tax on a $600 donation, for example.

We hope you will consider taking advantage of the CARES Act by increasing your annual contribution to YIVO in 2021!

FOR CORPORATIONS

The Act also offers enhanced charitable deductions to corporations. Previously, a corporation could take a deduction of up to 10% of its taxable income for the year for gifts made to public charities. The Act increases the cap to 25% of taxable income. Like the individual benefits, the enhanced corporate benefits expire after December 31, 2021.