April 15, Tax Day in the U.S., is just around the bend. So, I thought you might need a reminder about how The Coronavirus Aid, Relief, and Economic Security (CARES) Act changed the charitable deduction rules. Don’t worry! You’ll probably like these changes.
Changes for 2020 charitable deduction rules that won’t last forever
The CARES Act changed charitable deductions in 2020, anticipating a decline in revenues for philanthropic organizations. After a drop in giving April through June, Americans increased their generosity last year by 2% during the sharpest economic downturn since World War II. The changes to charitable deduction rules apply to 2020 but could stick around. The changes may impact you individually and your business in 2020 and 2021.
Here are the highlights of the charitable deduction changes.
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Ask your tax advisor how these charitable deduction changes impact you and your business. Also, check out inDinero’s tax resources for startups and small business owners.
Did charitable giving fall off a cliff in 2020? Quite the opposite.
In response to the global coronavirus pandemic last year, not-for-profit corporations like our client, The Town Kitchen, continued to serve their constituents. The Town Kitchen provides the Bay area with locally sourced food and beverages and trains underserved youth. Likewise, large corporations and smaller distilleries pivoted to provide goods like personal protective equipment and hand sanitizer to healthcare workers.
According to Blackbaud, the third sector brought in $40.7 billion in 2020. Notably, online giving jumped 21%, and 30% of online donations were made from mobile devices. What’s more, the average online gift size of $177 was $29 higher than online gifts in 2019.
This Pot of Gold post was inspired by ɸιλανθρωπία (Ancient Greek for philanthrōpía); the meaning of philanthropy is rooted in humanity, kindliness, and benevolence.
Small businesses are powered by generous, creative, and caring people. inDinero has helped companies just like yours to reach their social and financial goals. Schedule a call with one of our experts.
Quick Note: This article is provided for informational purposes only, and is not legal, financial, accounting, or tax advice. You should consult appropriate professionals for advice on your specific situation. inDinero assumes no liability for actions taken in reliance upon the information contained herein.