With the enactment of the Coronavirus Aid Relief and Economic Security Act (CARES Act), the government has provided two unique ways for individuals to make charitable contributions. These new charitable giving rules are relatively simple and will have a positive impact on taxpayers across the board whether or not they itemize their deductions.
For taxpayers who don’t itemize their deductions, they are now able to deduct up to $300 per year in charitable contributions provided that such deductions are made in cash and are made to qualified non-profit organizations that are designated as a public charity charities under Section 501(c)(3) of the Internal Revenue Code (such as FACE!).
This deduction falls within a category of deductions that are referred to as “above-the-line” deductions, and consequently, non-itemizing taxpayers do not have to file any additional schedules with their Federal Income Tax Returns (Federal Form 1040). Very simply, the deduction is taken directly against the taxpayers Adjusted Gross Income (AGI).
For taxpayers who itemize their income tax deductions, the CARES Act allows cash donations to public charities to be deducted up to 100% of the taxpayer’s AGI. This new deduction limitation is only available for taxpayers in 2020. For example, if an individual has AGI equal to $50,000, he or she may deduct up to $50,000 of cash donations made to one or more public charities, which would eliminate all of his or her income tax liability.
Remember that charitable donations come with certain record keeping and substantiation rules required by the Internal Revenue Service, and these substantiation rules have not changed despite the new deduction provisions of the CARES Act.
Please consider joining FACE Foundation’s Legacy Society: a group of deeply committed friends and supporters who sustain our lifesaving programs by leaving a bequest in their will. Writing a will is the only way you can be certain that your assets will be distributed as you wish, benefiting causes dearest to you. By considering FACE for your legacy, you will make a real and lasting difference for critically ill or injured pets in our community.
In receiving news about her illness, a longtime FACE donor thought not only about the welfare of her own pets, but also of other animals in need. Through including FACE in her will, this Legacy Society Member left FACE with a major gift that will enable us to save nearly 100 local pets in need of life-saving veterinary care. These lives and their families will be impacted forever through this donor’s fellowship, and her legacy will live on through FACE’s footwork.
FACE has already given over 2,693 beloved family pets a second chance at life through our Save-A-Life program. Imagine what we can achieve in the coming years with your support…
We can truly eliminate “economic euthanasia” in our community.
If you are interested in joining FACE’s Fellowship Society, please contact our Executive Director, Danae Davis, at 858-450-3223 or [email protected]. FACE will host occasional free seminars on planned giving. Please email us if you would like notification of these events.
Listen to Executive Director Danae Davis and Board Member Jarrett Bostwick on It’s Your Business Radio Show discuss planned giving with FACE here: