Benefits of Donations in 2020

In March, 2020, President Trump signed the Coronavirus Aid, Relief and Economic Security (CARES) Act into law to help support Americans facing the devastating impacts of COVID-19. The CARES Act provides increased tax incentives for charitable giving for both individuals and companies as a measure stimulate philanthropy. 2020 is the year to take advantage of the significant tax benefits of charitable giving!

Read about these incentives below.

Thank you in advance for your generous donation.

Charitable Deductions for Individuals

If you do not itemize on your return:

The CARES Act allows for an "above-the-line" deduction (in addition to the standard deduction for non-itemizers) for charitable gifts made in cash of up to $300 on your individual return. If you are not itemizing on your 2020 taxes, you can donate up to $300 to a qualified charity like Revved Up Kids and realize a direct reduction in Adjusted Gross Income. Deduction for married couples filing jointly is up to $600.

If you itemize on your return:

DONATE CASH TO REDUCE YOUR TAXES

For cash charitable contributions made in 2020, you can now elect to deduct up to 100 percent of your AGI (this is increased from 60 percent in previous years). This is the year to take advantage of significantly increased tax benefits of charitable giving.

DONATE FROM YOUR IRA TO REDUCE YOUR TAXES

Qualified Charitable Distribution rules (which allow individuals over 70½ years old to donate up to $100,000 in IRA assets directly to charity annually without taking the distribution into taxable income) remain unchanged. However, it is possible for individuals age 59½ - 70½ to recognize a similar benefit this year by taking a cash distribution from their IRA, distributing it to a qualified public charity like Revved Up Kids, and taking the charitable deduction of up to 100 percent of AGI.

Charitable Deductions for Companies

Corporate Deduction Limit Raised

If you are a business owner who has not experienced adverse impact from the pandemic, this is a good year to consider increasing your charitable giving. The deduction limit has been raised from 10% to 25% of taxable income. If your business tax return could benefit from a year-end cash gift to charity, contact us about a sponsorship! Call 678.526.3335 or email david@revvedupkids.org.


Donate By Mail

Check payable to:

Revved Up Kids, Inc.
3105 Gateway Drive, Suite C
Peachtree Corners, GA 30071

Alternative Donations

Revved Up Kids also accepts in-kind donations, donations of securities and legacy giving from charitable trusts. Please e-mail contact@revvedupkids.org to arrange these donations.

Contact us today!