New charitable giving guidelines expand tax benefits

Due to the ongoing economic impact of the COVID-19 pandemic, through the CARES Act donors can now enjoy expanded incentives for charitable giving in 2020.

Key changes include:

Tax incentive for giving up to $300 – Now, taxpayers can take a deduction for up to $300 in charitable contributions in 2020 if they do not itemize (must select standard deduction) on their tax return.

Removal of charitable giving deduction limit – Now, donors may deduct up to 100% of gross income through charitable giving in 2020 - a significant increase from the previous limit of 60%. 

Tax incentive for food donations – In addition to cash donations, donors who donate food to qualifying non-profits can claim the value of the food as a charitable contribution on their taxes.

“We are grateful for these changes to incentivize charitable giving in 2020. During these challenging and unprecedented times, gifts to Methodist Healthcare Foundation and other non-profits serving our most vulnerable community members are more important than ever,” shared Zach Pretzer, President of the Methodist Healthcare Foundation.

If you have any questions or would like to make a contribution, please contact Zach at 901-478-0699 or Zach.Pretzer@mlh.org.