CARES Act and Charitable Giving

The CARES Act (Coronavirus Aid, Relief, and Economic Security Act), a recent stimulus bill passed by Congress in response to COVID-19, contains several tax benefits designed to encourage charitable giving by individuals. We hope you will find this information helpful as you consider a gift to Cranbrook. Your support during this uncertain time will help preserve Cranbrook as a community where education is prized, the human spirit is nurtured, and innovation and creativity are valued.

For Non-Itemizers: New $300 Cash Contribution Deduction Available
Beginning in 2020, individuals who do not itemize their deductions (about 90% of all households) can claim a deduction for up to $300 (possibly $600 for a household filing jointly) in charitable giving. This new deduction (on top of the standard deduction) reduces a donor’s adjusted gross income, resulting in a reduction of taxable income and tax savings.

For Itemizers: Higher Charitable Deduction Limits
Individuals who itemize are now able to deduct cash gifts of up to 100% (previously 60%) of their adjusted gross income, effectively eliminating their federal tax liability in 2020. This increase in gift deductions may be used to make new gifts or to prepay existing multi-year pledges.

It’s important to note that the new charitable giving incentives only apply to cash donations made to public charities. Non-cash gifts (stock, real estate, or personal property) and gifts to donor-advised funds or private foundations will not benefit from these CARES Act provisions.

For more information regarding the CARES Act, please visit Planned Giving at Cranbrook.

The above is for informational purposes only and is not intended to provide and should not be relied on for tax, legal, or accounting advice. Donors should consult their tax, legal, and accounting advisors about their particular circumstances.