The Community Foundation of Northwest Missouri is reminding persons of the benefits of using their economic stimulus payment to increase their charitable giving.
Under the CARES Act signed into law on March 27, tax provisions will reward persons who donate to charities. A new “above-the-line” deduction of up to $300 is allowed for cash donations to a public charity in 2020. Donations to donor advised funds and certain organizations that support charities are not deductible. Persons can’t claim this deduction if deductions are itemized on the 2020 tax return.
For taxpayers who will itemize on their 2020 return, the 60 percent of adjusted gross income limit that normally applies to cash contributions is waived. That means persons can deduct 100 percent of their adjusted gross income in charitable cash contributions this year. As with the new above-the-line deduction, donations to donor advised funds and supporting organizations don’t count.
For corporations, up to 25 percent of taxable income can be deducted for charitable contributions from the previous 10 percent allowance. And as with this new above-the-line deductions, donations to donor advised funds and supporting organizations do not count.
The Community Foundation of Northwest Missouri has offered several opportunities to make allowable donations, including Stronger Communities, a relief fund for regional communities and nonprofits like COVID-19; Scholar-Link Program, providing financial assistance through scholarships to the students of the 18 counties of northwest Missouri; the Mary Margaret Hodgin Fund, providing animal relief for Andrew and Buchanan counties; individual scholarships, encouraging contributions to over 95 scholarships currently in place or creation of the donor’s own scholarship; and the Regional Vitality Fund, leadership training and overall good of northwest Missouri.
Persons wanting more information can contact the foundation at 816-232-2022 or visit the website at cfnwmo.org.
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