2020 Charitable Giving Tax Options

Get the most out of giving … below are a few tips to further your charitable giving in 2020.

Every year, Community Resource Center provides critical food, shelter and safety to hundreds of neighbors in need because of supporters like you. Below are some tips that can help guide you in your charitable giving. As always, please consult your accountant, financial advisor or IRS publications for more information on the giving strategy that is correct for you and your financial situation.

CARES Act: The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides some important provisions related to charitable giving that apply to the 2020 tax year. Taxpayers who don’t itemize deductions on their federal returns may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying organizations, such as CRC. The deduction is for donations made in cash, which includes check, credit card or debit card. Those over age 59½ (to avoid an early withdrawal penalty) who take withdrawals from retirement plan accounts in 2020 may use deductions for their charitable donations to help offset income tax liability on these withdrawals.

Corporate contributions: A corporation may deduct qualified contributions of up to 25 percent of its taxable income.

And please don’t forget about these options for giving:

Donations of appreciated non-cash assets: For those who do itemize deductions, appreciated non-cash assets, such as stocks, ETFs and mutual funds held more than one year, may offer an additional tax benefit in comparison to cash donations.

Qualified Charitable Distribution (QCD) through an IRA: Taxpayers age 70 ½ or older can make a qualified charitable distribution from their IRA directly to an eligible charity. A QCD counts toward the minimum distribution requirement for the year. Please contact your IRA administrator for assistance with making a charitable distribution.

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Learn More from IRS.gov




Questions? Please contact us at Development@crcncc.org or (760) 230-6307.