The CARES Act and Charitable Donations: What you need to know

In March 2020, the COVID-19 pandemic prompted passage of the CARES (Coronavirus Aid, Relief, and Economic Security) Act, a $2.2-trillion stimulus package that is focused on assisting individuals and businesses through loans and incentives, but which also affects philanthropic giving in some significant ways for the 2020 tax year and beyond.

Please consult with your tax or financial advisors to determine the best strategies for you.

New temporary universal $300 charitable deduction

Even if you don’t itemize your taxes, you can take a one-time deduction of up to $300 for cash gifts made in 2020 to charitable organizations like Wheeler.

Does it affect me? Yes! A gift of $300 to Wheeler can help:

  • Provide support for patients through our Basic Needs Fund, which is used by our community health workers to immediately address some of the social determinants of health that may affect our patients.
  • Allow patients in recovery to receive medication-assisted treatment for addiction by offsetting prescription co-pays.
  • Provide two doses of NARCAN, a lifesaving treatment to reverse overdoses.

No adjusted gross income limitation

In the past, donors could only deduct up to 60 percent of their adjusted gross income, no matter how much they gave. This year, you are allowed to deduct a contribution up to 100% of AGI.

Does it affect me? This generally will affect only those individuals who can give a significant percentage of their income to philanthropy, but it is certainly possible it could affect you. A major gift to Wheeler can have a transformative impact on the individuals and families we serve. Some recent examples are Mary Fran and Peter Libassi, who support out-of-the-box thinking and programming by our staff through the Libassi Innovation Fund, or the Corsini and Brantner families, who established the Corsini Kitchen and launched our nutrition programming.

Corporate and business donations

In the past, the maximum a corporation could deduct for charitable giving was 10 percent of taxable income. It has now been increased to 25 percent.

Does it affect me? Yes, if you are employed by a corporation. Ask your management what local charitable organizations your company could help through a donation. Matching gifts made by employers can also be an easy way to double your own individual giving!

The COVID-19 pandemic had a significant impact on community-based nonprofit organizations, and an even greater impact on the individuals we serve. With these changes from the CARES Act, and the still-new laws implemented in 2018’s tax reform (see our spring 2018 story for more information), this may be a great time for you to support Wheeler and help keep your community healthier and safer.

Please consult with your tax or financial advisors to determine the best strategies for you.

Back to Top