Have you shared with your supporters what the Coronavirus Aid, Relief, and Economic Security (CARES) Act can do for them?
One of the most significant steps the federal government has taken amidst the global pandemic are the provisions made in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that provide significant tax incentives to stimulate increased charitable giving to non-profit organizations.
If you have not shared news of how your supporters’ gifts can go further, we have included a sample template for you to email or mail to your supporters.
The letter outlines how their charitable giving can be maximized:
1. Gifts up to $300 are now 100% deductible. Until this bill passed, only those who itemized charitable gifts were able to receive a charitable deduction. Beginning now, individuals can deduct up to $300 whether or not they itemize their deductions. This deduction can be used for contributions of cash, credit card or checks (does not apply to gifts of stocks).
2. Deduction for gifts above $300 was raised up to 100%. Until this bill passed, individuals could deduct up to 60% of their adjusted gross income (AGI) for charitable deductions of cash (does not include gifts of stocks). The stimulus package allows individuals to deduct up to 100% of their AGI for 2020. Supporters who use this provision must inform the IRS. This is helpful for individuals making large gift donations and could allow a person to make a charitable gift while eliminating the tax burden. Any contributions in excess of total AGI may be carried forward for up to five additional years.
3. Additionally, corporations have greater incentives to make charitable gifts. Typically giving is limited to 10% of a corporation’s taxable income. The limit has been increased to 25% of the taxable income, making your charitable gifts even more effective.
Your center was founded to serve in crisis. After all, your mission is to serve women and men with compassion, hope and help during uncertain times. Communicate this important truth to your supporters and invite them to financially and prayerfully come alongside you during this unique time in history.
Thank you for continuing to inspire virtue in your community. May God bless you in the days ahead.