The Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted March 27, 2020 in response to COVID-19, contains provisions that may benefit you and provide you with new tax deductions.
For those that do not itemize, the new bill allows individuals (or couples that file jointly) to take a charitable deduction of up to $300 for cash contributions. It is an “above the line” adjustment to income that will reduce one’s adjusted gross income (AGI), and thereby reduce taxable income. The charitable deduction is in addition to the standard deduction.
for those who itemize
A provision of this sweeping legislation enables individuals who itemize to deduct charitable cash contributions to qualified charities such as Natural Lands up to 100% of their adjusted gross income (AGI) during the 2020 calendar year. Beyond this, contributions in excess of total AGI can be carried forward for up to five additional years. (This provision, generally speaking, cannot be used for Donor Advised Funds.)
Corporate taxpayers now benefit from higher limits for charitable gifts. Such contributions are limited to 25% of taxable income.
maximizing your individual retirement account (IRA) to impact conservation
For 2020, the CARES Act waives Required Minimum Distributions (RMDs) for IRAs and other retirement plans. If you are 70½ or older, keep in mind that you still qualify to take advantage of your IRA for charitable gift purposes (referred to as a qualified charitable distribution).
Read here about ways that fellow supporters are making a difference during these unprecedented times. And as always, we encourage you to contact your own financial advisor with questions related to your specific situation. But with the promise that you can count on Natural Lands to make the most of your conservation investment, we’d love to hear from you as well!
For additional conversation, please email or call:
Ann Hausmann, vice president of development
Gary Nelson, director of individual giving