CARES Act Can Help You Help Students and Increase Your Deductions

When you give to UNCF, you re-shape and change the lives of bright young people whose greatest desire is to complete college and succeed in life.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a $2 trillion economic stimulus package legislated to provide immediate relief for nonprofits. (see UNCF Supports the Coronavirus Child Care and Education Relief Act).

Thanks to the CARES Act, donors get some good news regarding their tax deductible gifts. If you itemize your deductions, the CARES Act increases your 2020 tax deduction limits from 60% to 100% of AGI. Gifts are deductible to the extent of the law.

Now is a good time to make a tax-deductible gift of cash or stock to support talented students at our HBCUs.

Visit UNCF.org/Donate and make your end-of-the-year donation.

 


 Information about the Deduction

The CARES Act applies a temporary universal charitable deduction for all taxpayers of up to $300. Ninety-two percent of taxpayers take a standard deduction rather than itemizing their charitable giving—under the new provision, taxpayers who do not itemize can now directly benefit from their charitable cash donations.

For 2020, there is no limit on cash contributions to charities making them fully tax deductible. The CARES Act increases the typical limit of giving from 60% of your adjusted gross income to 100%.

For Businesses
The CARES Act increases the maximum that corporations can donate to charity from 10% to 25% of their adjusted income. The maximum that corporation can donate to charity for food inventory has increased from 15% to 25% of their gross adjusted income.

Caring for Communities
Among additional provisions to protect employment and support the economy, the CARES Act puts communities first by empowering individual and corporate donors to continue giving to the charities that matter to them. Always donate to trusted 501(c)(3) nonprofits, like UNCF.

You can read the complete text of the CARES Act at congress.gov.

Note: This information is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.