The CARES Act

The CARES Act is a $2 Trillion economic relief package passed by congress on March 27, 2020. Along with protection for small businesses, healthcare workers, and more, this stimulus bill includes incentives to encourage charitable giving during this time. 

Below are some resources that further explain the tax benefits as it relates to charitable gifts. The following are not intended for tax, legal, or accounting advice. These resources are strictly for informational purposes only.

What Are The Three Incentives For Donors?

  • A temporary universal deduction that applies to non-itemizing taxpayers for cash charitable contributions in 2020 up to $300.
  • The existing cap is lifted on annual cash contributions for those who itemize, raising it from 60% of adjusted gross income to 100%.
  • For corporations, the law raises the annual AGI limit from 10% to 25%. Food donations from corporations are available to 25% of AGI, up from 15%.

How Much Should I Consider Giving?

The CARES Act has made adjustments that affect all levels of donors. The most widely relatable being the universal $300 deduction for non-itemizing tax payers. Gifts now are an investment in the future of the services we provide at Hospitality House.