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CARES Act Provides Enhanced Charitable Giving Incentives

Our Neighborhood Center case manager helps pack milk for food pantry distributions.

As the coronavirus continues to impact the Mountain State, people have been, and will continue to be impacted! For many, no pay means struggling beyond the day-to-day stress of making ends meet.

Many of our fellow West Virginians are struggling to pay rent and utilities. They need food. They need prescriptions. They need to know they are not alone.

Catholic Charities West Virginia has been here for our neighbors from the beginning and will continue to serve through this crisis.

Your donations help ensure Catholic Charities West Virginia’s ability to continue to provide programs and services.

As a result of a new federal law, the CARES Act – the Coronavirus Aid, Relief, and Economic Security Act – several opportunities to promote and benefit charitable giving are now available to donors.

Here is a summary of the new donor incentives:

Enhanced Charitable Giving Incentives

  • Temporary Universal Charitable Deduction—Taxpayers who do not itemize their deductions can take a one-time deduction of up to $300 for gifts made to charitable organizations. The provision is intended only for the year 2020; however, in the text of the bill, it states taxable years “beginning in 2020 …” and does not include a sunset date, thus it conceivably could extend beyond 2020. The deduction is ONLY for gifts of cash made in calendar year 2020 and does not cover other types of gifts or contributions made to donor-advised funds or private foundations.
  • Suspends the 60 percent adjusted gross income limitation for individuals’ charitable contributions for the year 2020. In a typical year, individuals can only take a charitable deduction of up to 60 percent of their adjusted gross income, no matter how much they give. For 2020, there is no limit, making cash contributions fully deductible.
  • Increases the cap on how much corporations may deduct for charitable gifts from 10 percent of taxable income to 25 percent. In addition, the limitation on deductions for food donations by corporations increases from 15 percent to 25 percent in 2020.
  • Waives for 2020 the required minimum distributions from retirement plans, such as pensions and 457 plans. Any minimum distributions from retirements plans that would have been required in 2020 can be delayed until 2021. This change reduces the incentive for donors to make gifts from their individual retirement account (IRA)—the IRA Rollover Provision.

(This information provides an overview of the key parts of the plan regarding charitable giving, but it is not intended to provide legal advice.) Source: Association of Fundraising Professionals

Let’s help one another during this difficult time. Please donate and help us support our neighbors struggling during this crisis.

To donate, make a check payable to Catholic Charities West Virginia and mail it to CCWVa, 2000 Main Street, Wheeling, WV 26003 or click here to make a donation online.

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