The CARES Act and Charitable Giving

POSTED: Monday, June 1, 2020

The Covid-19 Crisis has proved to be difficult for the Bosque Arts Center.  We have suspended our programs, postponed our fundraisers and events, and sorely miss our volunteers.  More than ever, we need the financial support of our members to continue to operate in our community.  Here are some ways the Coronavirus Aid, Relief, and Economic Security (CARES) Act might influence your giving.

Charitable Giving Tax Benefit:  The CARES Act, which was recently signed into law, includes a $300 per individual above-the-line-deduction for charitable giving, whether an individual itemizes or not.  It also suspends recent limitations on charitable cash donations by individuals and allows for cash gifts to most public charities of up to 100% of adjusted gross income in 2020.

Qualified Charitable Distribution:  The CARES Act provided for suspension of all Required Minimum Distributions (RMDs) from retirement accounts for 2020.  You can still do a qualified charitable distribution (QCD) from IRAS of up to $100,000 to a qualified charity in 2020.  The direct distribution will not show up as taxable income to the individual.

This general information is provided in the broadest terms and not meant to cover every situation.  With all financial decisions, you should consult with a CPA or tax professional who is familiar with your particular situation. -VR

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