Important Information Regarding the COVID-19 Stimulus Package / CARES Act and Making Donations to Community Nonprofit Organizations like Keep Truckee Meadows Beautiful.
On Friday, March 27, the Congress passed, and the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 trillion economic stimulus package legislated to provide immediate relief for nonprofits.
Charitable Giving Incentive: Creates a new above-the-line deduction (universal or non-itemizer deduction that applies to all taxpayers) for total charitable contributions of up to $300. The incentive applies to cash contributions made in 2020 and can be claimed on tax forms next year—Section 2204. The law also lifts the existing cap on annual contributions for those who itemize, raising it from 60 percent of adjusted gross income to 100 percent. For corporations, the law raises the annual limit from 10 percent to 25 percent. Food donations from corporations would be available to 25 percent, up from the current 15 percent cap – Section 2205.
Here’s How it Works
New Deduction Available: The bill makes a new deduction available for up to $300 per taxpayer ($600 for a married couple) in annual charitable contributions. This is particularly beneficial to people who take the standard deduction when filing their taxes (in other words, for taxpayers who do not itemize their deductions). It is calculated by subtracting the amount of the donation from your gross income. It is an “above the line” adjustment to income that will reduce your AGI, and thereby reduce taxable income.
To qualify, you would have to donate to a qualified charity. If you have already made your donation since January 1, that contribution counts toward the $300 cap. A donation to a donor-advised fund (DAF) does not qualify for this new deduction.
New Charitable Deduction Limits: Also part of the bill, individuals and corporations that itemize can deduct much greater amounts of their contributions.
Individuals can elect to deduct cash contributions, up to 100% of their 2020 adjusted gross income, on itemized 2020 tax returns. This is up from the previous limit of 60%.
Corporations may deduct up to 25% of taxable income, up from the previous limit of 10%.
You can learn more about the CARES Act here.
How the COVID-19 Health Crisis is affecting KTMB:
During the current health crisis, we are following the recommendation of health professionals and following CDC guidelines to refrain from touching and moving any litter or trash as the coronavirus can live for days on many surfaces.
- As an aerosol, for up to 3 hours (e.g., sneezing, coughing, etc.)
- Clothing – several hours up to a day
- Up to 4 hours on copper
- Up to 24 hours on cardboard o Up to 2-3 days on plastic and stainless steel
- Up to 4 days on glass surfaces like a Smartphone
For the safety of our volunteers and staff, we have suspended all cleanup efforts at this time. Due to the stay at home order from Governor Sisolak, schools are currently in session remotely, with students participating in online classes and curriculum. As a result, KTMB has also suspended our in-classroom youth education programs at this time, but we are working on making our curriculum available online and through videos.
If you can, please consider donating to KTMB today. We will need all the help and resources we can get when all this is over to clean up our community and Keep Truckee Meadows Beautiful.
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.