The CARES Act and Your Philanthropy

The COVID-19 pandemic continues to shape the way in which we live, work, and play in our community and the Community Foundation of North Central Wisconsin is working hard to continue responding to the community’s most pressing needs. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27, 2020, providing unprecedented government relief in response to the COVID-19 pandemic. The law contains provisions that are relevant to charitable giving, both directly and indirectly. Specifically:

60% of AGI Limit Suspended for 2020
For the 2020 tax year, individuals can deduct any cash contributions made to qualified charitable organizations, up to 100% of their adjusted gross income (AGI). Deductions for cash donations were previously limited to 60% of the taxpayer’s AGI.

New $300 Deduction for Qualified Charitable Donations 
Individuals who take the standard deduction can claim an above-the-line tax deduction for cash donations to qualified charitable organizations, up to $300.

Donor-Advised Funds Not Affected 
Deduction limitations for charitable gifts to donor-advised funds, private non-operating foundations, and supporting organizations were not changed under the CARES Act.

Corporations’ 10% Limit Increased to 25% for 2020
For the 2020 tax year, corporations can deduct up to 25% of the taxpayer’s taxable income for any cash contributions made to qualified charitable organizations. Deductions for cash donations were previously limited to 10% of the taxpayer’s taxable income.

One opportunity to support your community financially is the COVID-19 Community Response Fund, a fund of the Community Foundation of North Central Wisconsin in partnership with United Way of Marathon County. The fund was created to respond to the near and long-term impact COVID-19 will have on the nonprofits in our community. It is a vehicle for the Community Foundation and its donor partners to pool resources to collectively support the recovery of nonprofits serving those disproportionately affected by the COVID-19 pandemic. 100% of your gift will be invested directly into our community as the Community Foundation is waiving all fees.

We realize that the health and financial well-being of your family is of most importance to you at this time. Know that the Community Foundation is here to help you with any questions you may have in dealing with your philanthropy.