11 Dec 2 Great Reasons to Be Generous with Your Year-End Charitable Giving
Accountants like Boca Raton CPA Dan Robinson can tell you all about the tax advantages tied to charitable giving. But that’s not the only reasons to give – especially this year.
If you are still looking for a little motivation to write that check or click that donate button, here are top two reasons to up your charitable gifts this year.
1 – Tax Breaks
We all know that 2020 has not been an average year so it shouldn’t come as too much of a surprise to learn that the tax rules regarding charitable giving are different this year.
The Coronavirus Aid, Relief, and Economic Security Act, which most of us know as the CARES Act, included a number of provisions that you are probably familiar with – like those $1,200 stimulus checks and the Paycheck Protection Program (PPP).
The CARES Act also included some lesser known provisions, one of which applies to the tax break you can claim for your charitable giving. As CNBC reports, “The CARES Act, the major relief bill that went into effect in the spring, gives donors an incentive to give away more cash. Taxpayers who take itemized deductions on their tax return can deduct up to 100% of their adjusted gross income for cash donations to public charities.”
Notice they said, “public charities.” “Certain entities are excluded from this deal, which means you can’t collect a 100% deduction for donating cash to your donor-advised fund,” CNBC’s experts explain.
This is one-time deal – at least as far as we know. There will undoubtedly be additional relief legislation for 2021 but the details aren’t known yet.
2 – The Need
There is certainly no shortage of worthwhile causes looking for donations this year. The pandemic has dealt a devastating blow to the nonprofit arts community across the country. Here in Boca Raton, we are fortunate to have a number of arts organizations that would be grateful for your support during these challenging times, including:
The pandemic has also put unprecedented pressure on food banks as more and more people in our community struggle to put food on the community. If you can help feed a family this holiday season, you may want to consider these organizations:
Best wishes for a happy and healthy holiday season from all of us at the Succentrix Boca Raton CPA firm.