What You Need to Know About the CARES Act Charitable Incentives

Philanthropic Services Group

The Denver Foundation

The Coronavirus Aid, Relief, and Economic Security (CARES) Act contains significant incentives for donors to support the fight against COVID-19. Here are some highlights we believe will be of interest to our donors, advisors, partners, and the community:

- Individual taxpayers may deduct up to 100% of their AGI for cash contributions to public charities. This is a substantial increase from the previous rate of 60% of AGI, and excess contributions can be carried over for the next five years.

- Corporate taxpayers may deduct up to 25% of their AGI for cash contributions to public charities, a substantial increase from the previous rate of 10%.

- There is no change to the 30% AGI limit for contributions of long-term appreciated securities, both public or private. Qualified Charitable Distributions (QCDs) of up to $100k from retirement accounts are still permitted.

- All taxpayers who do not file an itemized tax return may take an above-the-line charitable income tax deduction for contributions up to $300. This option is available regardless of Adjusted Gross Income (AGI). This may be a one-time gift of $300 or multiple charitable contributions totalling $300.

These provisions are limited to the 2020 tax year, apply only to cash gifts (not those of appreciated securities), and do not include gifts to donor advised funds, private foundations, or supporting organizations. However, direct grants to nonprofit organizations, scholarships, and initiatives like The Denver Foundation's Critical Needs Fund do qualify.

We invite you to join us in supporting vulnerable people in our community by making a gift to the Critical Needs Fund here.

If you have any questions, please reach out to our Philanthropic Services Group (help@denverfoundation.org) at any time. Together, we are helping our community get through this difficult time. We wish you all health, safety, and peace.

Learn More:

Visit The Denver Foundation’s COVID-19 resource page.

The Chronicle of Philanthropy, “How the New $300 ‘Universal’ Deduction Works”

Forbes, “Giving More Than 60% to Charity? CARES Act Says Deduct It”

Wealth Management, “CARES Act Sweetens the Pot for Charitable Giving”

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