The Coronavirus Aid, Relief and Economic Security (CARES) Act, a new law that went into effect in March, is a $2 trillion economic stimulus package legislated to provide immediate relief for all taxpayers, including nonprofits.
One aspect of this new law is a new deduction of up to $300 per taxpayer ($600 for a married couple) in annual charitable contributions. This is available only to people who take the standard deduction (for taxpayers who do not itemize their deductions). It is an âabove the lineâ adjustment to income that will reduce a donorâs adjusted gross income (AGI), and thereby reduce taxable income. Â
To qualify for this deduction, taxpayers need to give a donation to a qualified charity, such as the East Valley JCC. Any non-tax credit eligible contributions made since Jan. 1 count toward the $300 cap ($600 for couples). Â
The East Valley JCCâs COVID-19 Emergency Fund was established to help those with the most crucial needs in the East Valley and supply groceries and household goods to families, seniors and others who are experiencing financial hardships caused by the current COVID-19 pandemic.
On May 5, which has been designated as #GivingTuesdayNow: A Day of Unity, all donations made to this emergency fund will be matched dollar-for-dollar up to $5,000. This day of unity, launched by the team who organized #GivingTuesday, is a global day of support for nonprofits.
Click below to donate to the EVJCCâs COVID-19 Emergency Fund on #GivingTuesdayNow.Â
This information is not intended as tax advice. Please consult a tax adviser to see how this applies to you.
