We say it a lot – and we mean it every time – The Hope Effect has the best supporters in the world! We have been overwhelmed by your generosity during these uncertain times. Thank you so much for your continued support!
And there’s good news! There has never been a better time to make a charitable donation…especially one that helps orphaned and vulnerable children! As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Congress has made several changes regarding charitable giving in 2020.
While we certainly aren’t tax professionals, we thought it would be helpful to let you know about these changes! Read on to learn more…
Raising the Charitable Giving Deduction Cap
If you itemize your deductions and directly write off gifts to charity, the CARES Act has raised the limit on charitable contributions from 60% of adjusted gross income to 100% for individuals and joint filers. Essentially, that means there is no limit…and every dollar you donate is fully deductible. In addition, the limit for charitable deductions for corporations has been raised from 10% to 25% of taxable income.
Universal Deduction for Donations Up to $300
If you’re an individual who doesn’t itemize your charitable giving (and 9 out of 10 of us don’t!), the CARES Act will allow you to deduct charitable donations of up to $300 on your 2020 federal tax return. And married-filing-jointly taxpayers can get a deduction of up to $600.
If you have specific questions about these changes, we recommend contacting your tax professional. But if you want to change the way the world cares for orphans, we’d be honored to help with that! You can partner with us by clicking the link below.
Thank you again for your generosity and support. You are making such a difference in the lives of orphaned and vulnerable children. You are changing the way the world cares for orphans.
*This information is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor.