The Consolidated Appropriations Act and Charitable Giving
Because of you, organizations like The ALS Association can continue to meet the needs of people impacted by ALS. We remain grateful for your support during this past year and as we look ahead.
The Consolidated Appropriations Act (CAA) was signed into law on December 27, 2020 and extends philanthropic benefits to donors from the 2020 Coronavirus Aid, Relief and Economic Security (CARES) Act.
We provide the following information to help you make informed decisions; three provisions to keep in mind when considering your charitable investments include:
- Waived AGI. Individuals may deduct cash gifts to most public charities in an amount up to 100% of their adjusted gross income (AGI). Gifts to donor advised funds (DAFs) or supporting organizations (SOs) are not eligible.
- Non-itemizers are still eligible for charitable deductions. Individual (or married couples who file individually) non-itemizers are eligible for a charitable deduction up to $300; married couples who file jointly are eligible for a charitable deduction up to $600. Gifts to donor advised funds (DAFs) or supporting organizations (SOs) are not eligible.
- Cash contributions from corporations continue at the increased 25% rate. The taxable income limit that applies to cash contributions made by corporations to charity remains at the increased rate of 25%. The usual 10% limit still applies to other charitable contributions by corporations, and those contributions reduce the 25% limit dollar-for-dollar. Qualified cash contributions in excess of the 25% limit can be carried forward for up to 5 years under the usual limits.
*Gifts to donor advised funds (DAFs) or supporting organizations (SOs) are not eligible.
If we can help you understand how to craft a 2021 giving plan that benefits you and your family, please contact us at [email protected] or call 888-226-5185
This information is for education purposes only and we encourage you to consult your professional financial advisor to learn more about the best options for you.