The Coronavirus Aid Relief and Economic Security (CARES) Act became law in March of 2020. This law includes a few provisions that impact charitable giving:
Non-itemizers eligible for $300 tax deduction:
A reduction in taxable income is now available for individuals who take the standard deduction rather than itemize their deductions. This inclusion creates a new above-the-line charitable deduction for cash contributions of up to $300 ($600 for a married couple) and may encourage donors who previously did not receive a tax benefit to continue their charitable giving. The adjustment does not apply to gifts made to a Donor Advised Fund.
Cap on deductions lifted:
For 2020 only, individuals who itemize may deduct annual contributions up to 100% of their adjusted gross income for cash gifts made to nonprofits. This adjustment may be attractive to donors who wish to make a large cash donation. Gifts made to a Donor Advised Fund do not qualify for the increased deduction.
If you are interested in learning more about the implications of this act on your charitable giving, please consult your financial adviser. Please also feel free to contact Molly Robbins, Director of Institutional Advancement if you have additional questions about ways of supporting Gladwyne Montessori's mission during this unprecedented time.