Like many of you, I have been reflecting on actions I can take to help a world that is feeling very much in need of repair amidst the reality of COVID-19. There is tremendous demand for individuals to volunteer, especially as former volunteers who are particularly vulnerable to the virus take a step back from those roles. Equally important is the need for advocates bringing attention to critical issues. And, of course, there is tzedakah, an opportunity to engage in acts of righteousness and giving, be it bringing meals to medical professionals on the front lines or supporting organizations that are helping respond to the pandemic.

All nonprofits, including the temple, are feeling economic pressure as a result of COVID-19. When Congress passed the CARES Act at the end of March, it recognized that charities would need monetary assistance to continue their vital missions and included provisions in the relief package to promote giving by offering tax breaks for gifts made in 2020. These breaks only apply for cash contributions made directly to the charitable organization (not to private foundations or donor advised funds).

Under the CARES Act:

  • Non-itemizers may receive an above-the-line deduction for up to $300 in charitable contribution. If you have been opting for the standard deduction in recent years and got out of the habit of keeping your charitable receipts, you may want to hold onto them this year, in case they are needed in order for you to take advantage of this benefit.
  • This year, itemizers can make charitable contributions directly to organizations equal to their adjusted gross income (AGI) and deduct the full amount. If they make a gift in excess of their AGI, for tax purposes, that excess would carry over to the following year and be subject to the 60% AGI limit. If you have any multiyear pledges at a charitable institution, you may want to explore advancing those payments to take advantage of this 2020 option.
  • The annual cash gift limit for corporate donors, including partnerships, is increased from 10% to 25% of corporate taxable income, potentially allowing greater charitable support. Also, given the heightened awareness and incidence of food insecurity, the CARES Act provides significant incentives for food donations. The tax deduction available for food inventory has been increased from 15% to 25%. Taxpayers who donate food to their local food pantry can claim the value of that food on their taxes.

The CARES Act provides financial stimulus to renew our economy. Please explore these special incentives and consider including Temple Jeremiah in your charitable giving plans. Whether you are thinking about outright gifts or are creating legacy plans, I am always available to speak with you. Gifts at every level are critical to maintain the programs and worship services the temple offers and are especially appreciated during this time. As always, please consult with your tax advisor for details about tax laws and your personal giving situation.