CARES Act, Unpacked

The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides significant tax incentives to stimulate charitable giving to non-profit organizations like the Pregnancy Clinic Ministry.

If you are in a position to partner with us today, your gift will allow us to continue caring for women making a pregnancy decision in the days and months ahead.

Here’s how the new law stretches your charitable giving:

1.Gifts up to $300 are now 100% deductible. Until this bill passed, only those who itemized charitable gifts were able to receive a charitable deduction. Beginning now, individuals can deduct up to $300 whether or not they itemize their deductions. This deduction can be used for contributions of cash, credit card or checks (does not apply to gifts of stocks).

2.Deduction for gifts above $300 was raised up to 100%. Until this bill passed, individuals could deduct up to 60% of their adjusted gross income (AGI) for charitable deductions of cash (does not include gifts of stocks). The stimulus package allows individuals to deduct up to 100% of their AGI for 2020. Supporters who use this provision must inform the IRS. This is helpful for individuals making large gift donations and could allow a person to make a charitable gift while eliminating the tax burden. Any contributions in excess of total AGI may be carried forward for up to five additional years.

3.Businesses and Corporations now have greater incentives to make charitable gifts. Typically giving is limited to 10% of a corporation's taxable income. The limit has been increased to 25% of the taxable income, making your charitable gifts even more effective.

If you have other questions about how the CARES Act can help you maximize your giving, please consult your accountant.