Itemized Charitable Deduction Making a Comeback in 2020
Photo by Heidi Kaden on Unsplash
A little good news is welcome right now.
The Coronavirus relief legislation passed by the United States Senate last night includes a provision to allow donors to deduct up to $300 worth of contributions made in 2020 in addition to the standard deduction.
“Under the 2017 tax law, the standard deduction was increased so much that way fewer people are itemizing deductions, including for gifts to charity. The proposal in the stimulus would let non-itemizers take up to a $300 above-the-line charitable income tax deduction for cash donations made in 2020. So for folks who take the standard deduction, if you give $300 to charity, you’d get the $300 tax break in addition to the standard deduction ($12,400 for individuals and $24,800 for married couples filing jointly).”
You can learn more in this Forbes article by Ashlea Ebeling. Watch progress of this bill through the House. As your donors turn to you in the coming days, I know you will want to be as informed as possible about the shifting philanthropy landscape. This is a bit of welcome news for nonprofits during the crisis.
It’s a tough time for everyone. If you just need to talk, call me.
In the meantime, Download: 3 Things Every College President Should Know About Fundraising.
With over 25 years of senior-level education leadership experience, including as president and vice president for advancement, David Rowe is a senior consultant with AGB: Association of Governing Boards, executive coaching and mentoring practice lead for Registry Advisory Services and the CEO of The Development President.