We are in unprecedented times and we now have an even greater opportunity to see our contributions help the families that need us. For families that already struggle with the basic needs of food, clothing and shelter, this crisis has hit especially hard.
On March 27th, the Senate signed the bill for a $2 Trillion COVID-19 stimulus package, The CARES Act, aimed to help Americans affected by the pandemic crisis. An important provision to note for charities and non-profits like Operation Warm is an above-the-line charitable income tax deduction.
Taxpayers who do not currently itemize deductions on their personal income tax returns have been unable to deduct charitable contributions. The CARES Act debuts a new $300 “above the line” deduction available to taxpayers making cash gifts to public charities in 2020 and in following years. For people who take the standard deduction, if you give $300 to charity, you would get the $300 tax break in addition to the standard deduction ($12,400 for individuals and $24,800 for married couples filing jointly).
The CARES Act also introduces, for 2020 only, the ability to deduct cash contributions made to public charities up to 100% of 2020’s adjusted gross income (AGI). This amount was previously limited to 60% of a taxpayer’s (AGI). Carryover rules continue to apply to contributions in excess of these limits and the limits for deductibility of other types of property still apply.
Donations to private foundations, donor-advised funds and supporting organizations do not qualify for this special 2020 treatment (100% of AGI). The more generous deductions also do not apply to gifts of securities or other property even when contributed to public charities.
But, to the charities that do qualify and that serve the low-income families that may be the hardest hit by the economic effects of the pandemic, such as Operation Warm, it underscores the meaning of “every dollar counts”. Many charities are still recovering from the drop in charitable donations post-2017 (when the hike in standard deductions resulted in fewer people itemizing deductions, including for gifts to charity), which is only exacerbated by the current crisis. Our families need you now, more than ever.
We understand that you may have viewed Operation Warm as a seasonal commitment. However, given the unique challenges of forward-planning for our families and operating during this crisis, we are asking you to consider supporting us now.
Operation Warm pours everything we have into our mission – 95 cents of every dollar donated goes to our coat program – and your early donation will ensure we are prepared to help serve local communities this coming coat season.
About the Author
Dominique C. DuMouchel is a Business Development Director in Glenmede’s Wilmington office. In this role, she is responsible for business development initiatives that foster relationships with high-net-worth individuals and families, family offices, endowments and foundations, non-profit entities and institutional entities.
Ms. DuMouchel is an active member of the Delaware community, serving on the Development and Human Resources Board Committees for the Ronald McDonald House of Delaware, and is a mentor for the United Way Women’s Leadership Initiative. She is a frequent speaker at events and conferences.
Ms. DuMouchel graduated cum laude with a B.A. in English from the Villanova University Honors Program.