Charitable Giving Incentives In CARES Act

Charitable Giving Incentives In CARES Act

Charitable Giving Incentives In CARES Act

During this time of uncertainty, it is important for nonprofit organizations to be aware of new legislation that may impact them. This March, Congress passed the CARES Act in order to address the economic fallout that has been caused by the COVID-19 pandemic. The legislation includes a variety of funding opportunities for nonprofit organizations, but it also changes the structure of tax benefits in order to further incentivize individuals and corporations to provide financial support to charitable organizations during this time.

Understanding how these changes can impact your organization could be very beneficial as the world struggles with the coronavirus pandemic. We have outlined the changes that were made, and how they will impact charitable giving.

For individuals taking the standard deduction, they are now able to reduce their taxable income in 2020 by up to $300.00 for cash contributions to charities. Recipients can do this by using what is known as an “above the line adjustment,” a calculation of the total before the adjusted gross income.

Typically, individuals itemizing their deductions are limited with respect to the amount of deduction available for charitable contributions made during the year. These limits are determined by a percentage of the individual’s adjusted gross income, but the CARES Act has changed these limitations. For individuals choosing to itemize their deductions, the CARES Act now allows for cash contributions to qualified charities to be deducted at up to 100% of their adjusted gross income for 2020. Ordinarily, the income tax charitable deduction for cash donations is limited to 60% of a taxpayer’s income. This 100% limit allows donors to reduce their 2020 federal income tax to zero. 

The CARES Act also affects distributions from retirement accounts. For the year 2020, regardless of the age of the owner, there will not be a mandatory distribution from the retirement account, which allows the account(s) to recover. The minimum age for making a transfer that is tax free is still at 70.5, and the annual limit will remain at $100,000. However, because these cash gifts are deductible in 2020 to the extent of adjusted gross income, an individual would be able to withdraw money from the retirement account, then contribute a larger amount and still offset the taxable withdrawal.  

At Cause Inspired, we understand that this time is challenging for nonprofit organizations. We work hard to provide helpful resources and effective digital marketing solutions.

If you are interested in learning more about how Cause Inspired can help your nonprofit reach your audience digitally, contact us today!

Growing Your Good Work

Overview of Services:

Are you a new or small nonprofit needing help to continue to grow? Are you a mid-sized nonprofit that needs assistance with a new project or a new planning phase? If so, let’s connect so my experience and passion to help nonprofits can be put to work for you! Brenda has dedicated over 15 years to the nonprofit sector and worked with both large and small organizations. Out team has helped nonprofits grow through strategic planning and goal setting, successful project and organizational management, grant writing and administration, and fundraising. We are passionate about helping many sectors and organizations grow their good work! Our Coaching and Planning Services help you create your road map to long-term success! With guidance and hands-on assistance, we help nonprofits with business, strategic and operational planning and implementation that create continual measures of success. Ongoing coaching ensures a sustainable level of community service and support. Our grant research, writing, and administration services allow nonprofit Boards, staff, and volunteers to focus on mission related activities & donor relationship building. Put our long track record of successful grant services to the task of filling funding gaps.

Key Services (Bullet Points):

  • Senior Management Coaching
  • Strategic and Operational Planning
  • Grant Writing and Management

Special Benefits for Cause Inspired Clients

Caused Inspired clients receive one free month of grant services or two 30-minute coaching sessions. This is equal to $300 of free services!

Growing Your Good Work primarily serves small and mid-sized nonprofits in all sectors.

Growing Your Good Work

Address – Saint Augustine, FL

Phone Number – 904-599-8663

Email Address – [email protected]

Website – https://www.growingyourgoodwork.com/

Point of Contact – Brenda Swann

Region You Serve – National

MilkCrate

Overview of Services:

MilkCrate is a mission-driven tech company that empowers nonprofits to grow using technology. It provides a tool for nonprofits to take their offline programs online through an affordable mobile app that engages participants and allows for real-time impact reports for donors and stakeholders.

Key Services (Bullet Points):

A templated mobile app for nonprofits with various features:

  • Data Entry / Upload
  • Brand Development
  • Data Analysis
  • Platform Bugs & Features
  • App and Website Integration Platform Enhancement
  • Bespoke Development

Some organizations we worked with include Mighty Writers, PYSC, Hoplite Resilience Center, and more.

MilkCrate

Company Name – MilkCrate

Address – 448 N 10th St Floor 6, Philadelphia, PA 19123

Phone Number – (215) 720-1625

Email Address – [email protected]

Website – https://milkcrate.tech/

Point of Contact – Morgan Berman

Region You Serve – Nationally and internationally

TiksonDirect

Overview of Services:

I work with nonprofits as a de-facto fundraising, marketing, and/or operations director. I have a limited number of clients who view me as a member of their team, not as an outside consultant.

Key Services (Bullet Points):

  • Fundraising
  • Marketing
  • Operations
  • Strategy

I have worked for some of the largest nonprofits in the country, but now seek to work with only a few at a time, serving as a parttime member of your management team.

TiksonDirect

Address: 8751 High Gate Way, Belvidere, IL 61008

Phone: 214-403-5994

Email Link [email protected]

Website www.tikson.com

Contact Jeff Tikson

Region We Serve – Nationally