Coronavirus Relief (CARES) Act and the New Charitable Giving Rules

Caring and Funding Podcast powered by CAF America

CAF America President & CEO Ted Hart and his guest expert David Shevlin, Partner at Simpson Thacher, discuss the new charitable giving rules that became law as part of The Coronavirus Aid, Relief and Economic Security (CARES) Act. The $2 trillion coronavirus stimulus bill includes provisions meant to encourage Americans to donate to charity. The move is meant to encourage additional contributions to the nonprofit sector, which is the third-largest industry in the country. Four specific provisions of the CARES Act will be discussed on this podcast, each provides incentives for individuals, families and corporations to give, but to receive the associated tax benefits, the new rules must be followed. Listeners will learn the steps necessary to qualify for the new "universal deduction", learn how those who itemize their deductions, can take the new 100% deduction off their adjusted gross income, learn how donor-advised funds are implicated in the new rules and how charitable contributions for corporations, that make cash contributions in 2020, can deduct 25% taxable income (up from 10%).