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The CARES Act: How it Benefits Donors

Summarized facts from the IU Lilly Family School of Philanthropy



The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was passed on March 27, 2020 to help taxpayers, businesses, and nonprofits in the wake of the pandemic and economic downturn. It offers provisions that make 2020 a great time to support charities like the Honeywell Foundation. While set to expire at the end of this year, there may still be time to take advantage of the benefits of the CARES Act.


What donors need to know


Itemizing

The adjusted gross income (AGI) limit for cash contributions was increased for individual donors. For cash contributions made in 2020, donors can now elect to deduct up to 100 percent of your AGI (increased from 60 percent). Not Itemizing

The CARES Act allows for an additional “above-the-line” deduction for charitable gifts of up to $300 made in cash. If individuals are not itemizing on their 2020 taxes, they can claim this new deduction. DAF Giving

These new incentives apply only to cash contributions to public charities and do not apply to contributions to supporting organizations or public charities that sponsor donor-advised funds. IRA Giving

The Required Minimum Distribution is waived for IRA and other qualified retirement plan owners for 2020. For donors who still wish to use IRA funds to make a qualified charitable distribution, it is still available up to $100,000 for individuals who are older than 70½.


Corporate Giving

The AGI limit for cash contributions was also increased for corporate donors. Corporations can now deduct up to 25 percent of taxable income (up from 10 percent).



Questions?

The CARES Act is several hundred pages long and includes many provisions that could benefit you financially. Learn more via the U.S. Department of the Treasury, consult your financial advisor about these provisions, or contact the Honeywell Foundation if we can assist you with any gift-planning opportunities: (260) 563-1102 info@honeywellfoundation.org.