The CARES Act 2020 Extended and Expanded for 2021
The CARES (Coronavirus Aid, Relief, and Economic Security) Act provides temporary relief for charities and enhanced giving opportunities for donors who make cash gifts in calendar year 2020. The Consolidated Appropriations Act of 2021 (CAA, Public Law No. 116-260) was signed into law on December 27, 2020. The Act extends and expands changes to the rules of charitable giving enacted under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (CARES Act, Public Law No. 116-136) and increases the penalty for tax underpayments attributable to an overstated charitable contribution by a taxpayer who does not itemize.
Enhanced Giving Opportunities:
- Temporary Universal Charitable Deduction: Taxpayers who DO NOT ITEMIZE their deductions can take a one-time deduction of up to $300 (individual taxpayers) and $600 (joint/married taxpayers) for gifts made to a 501(c)(3) public charity, such as Parkview Baptist School and Parkview Baptist Church. The deduction is ONLY for CASH (including checks, debit, and credit card transactions) and does not cover other types of gifts (securities or gift-in-kinds) or contributions made to donor-advised funds or private foundations. Because the CARES Act deduction is a universal above-the-line deduction, you can list your contribution as an adjustment to income on your taxes.
In short, with the CARES Act, if you donate up to $600 in cash to Parkview before December 31, 2021, your adjusted gross income will be reduced up to $600.
- Suspends the 60 percent adjusted gross income limitation for individuals’ charitable contributions for the year 2021. In a typical year, individuals who ITEMIZE can only take a charitable deduction of up to 60 percent of their adjusted gross income, no matter how much they give. A donor can fully deduct gifts equal to as much as 100% of their adjusted gross income in 2021.
As always, please consult with your tax adviser for their recommendations on what giving options would be best for your personal circumstances.
Resources used to prepare this information:
The entire CARES Act can be found here: https://www.congress.gov/116/bills/hr748/BILLS-116hr748eas.pdf
The Consolidated Appropriations Act of 2021 can be viewed here: http://www.parkviewbaptist.com/wp-content/uploads/2021/02/BILLS-116hr133enr.pdf
To learn about all giving options at Parkview, please contact Director of Development Michelle White at 225-291-2500, ext. 125 or firstname.lastname@example.org.