CARES Act Includes Charitable Giving Incentives

In times of crisis like the current COVID-19 pandemic, philanthropy is more important than ever to keep critical health care and research moving forward toward a cure and to ensure the safety and security of the Emory community.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act—a $2 trillion federal relief package signed into law on March 27—contains several tax provisions to incentivize charitable giving. The CARES act:

  • Creates a universal charitable deduction of $300 that will be available to all taxpayers, not just those who itemize.
  • Lifts the cap on the deduction of cash contributions for those who itemize from 60% to 100% of Adjusted Gross Income for 2020. This increase only applies to gifts to public charities like Emory, not to private family foundations or donor advised funds.
  • Temporarily suspends required minimum distributions (RMD) from retirement accounts for the 2020 tax year. An individual over age 70 ½ can still make IRA distributions to charity of up to $100,000 and exclude that amount from taxable income.

The CARES Act recognizes the important role that nonprofit organizations like Emory are playing in responding to our national crisis. Now more than ever, your generosity can make a difference.

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