Mahalo for joining this movement fighting for children and families! The federal CARES (Coronavirus Aid, Relief, and Economic Security) Act contains a few key provisions for donors during the coronavirus pandemic:
All taxpayers can take a charitable "above-the-line" deduction of up to $300, even if you do not itemize. This applies only to cash contributions to qualified charities (like HCAN). It does not apply to donations to private foundations, supporting organizations or donor advised funds.
For those who do itemize their deductions, the new law allows for cash contributions to qualified charities like HCAN to be deducted up to 100% of your adjusted gross income for the 2020 calendar year. You must elect to take advantage of these relaxed limits. This also does not apply to contributions to donor-advised funds or to certain private foundation supporting organizations.
Also, the new law temporarily suspends the requirements for required minimum distributions (RMD) for the 2020 tax year. Many donors use their RMD to make a gift from their IRA, called a qualified charitable deduction (QCD). If you are 70½ or older, you can still make a gift from your IRA or name us as a beneficiary. Don't forget that your RMD can be directly donated, tax-free, to a charity like HCAN.
If you have any questions, please contact Director of Advancement Ryan Catalani:
firstname.lastname@example.org | (808) 531-5502 ext. 4
- The CARES Act of 2020: Taxation Provisions (Squire Patton Boggs)
- CARES Act: Highlights of the Tax Provisions (Cherry Bekaert)
- Donating to a charity using a qualified charitable distribution (Fidelity)
This information is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.