CARES Act Tax Incentives for Seacrest Foundation Contributors

For those who have already donated to the Seacrest Foundation Covid-19 Emergency Fund, as well as those considering a donation, there are some important new tax incentives as a result of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) of which you should be aware:

  1. Taxpayers who don’t itemize may now deduct up to $300 per year in charitable contributions. Since this is a universal “above-the-line” deduction, taxpayers don’t have to file Schedule A (itemize) to claim it. Instead, taxpayers list it as an adjustment to income on Schedule 1 of Form 1040 and then deduct it from their gross income (along with all other adjustments to income) on the first page of their Form 1040. Such deductions must be:
    • in cash (no property like old clothing)
    • given to a 501(c)(3) public charity
      (Exclusions: Contributions to non-operating private foundations, support organizations, and donor advised funds.)
  2. Limitations are lifted on charitable contributions by individuals who itemize from 60% of adjusted gross income to 100% of taxable income. They may also choose to carry forward any unused deductions for up to five years. (Donations to donor-advised-funds would not qualify.)
  3. If you are over age 70 1/2 you may still benefit greatly from tax-free Qualified Charitable Distributions from your IRA.  (Up to a maximum of $100,000.)
  4. Charitable deductions by a corporation will see an increase from 10% to 25% of taxable income for 2020. (Charitable food contributions will increase from 15% to 25%.) Donations in excess of 25% may be deducted in the following five years.

Please consider a gift to help the most vulnerable among us, the residents of Seacrest Village and the clients of Seacrest at Home, along with our staff who are on the front-lines caring for them around the clock to keep them safe and healthy.

Be safe and well,

Robin P. Israel, MPA
Chief Foundation Officer
Arthur & Sophie Brody Philanthropy Chair

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