Thanks to the Grand Rapids Business Journal for interviewing our own Phil Mitchell on the one-time-only tax deduction on nonprofit giving as part of the CARES Act in 2020.
He said while the $300 write-off is “not a huge amount,” it could help to prompt the people who are motivated by deals to continue supporting qualifying charities during a time when the usual fundraiser events are impossible, and many nonprofits are struggling with finances.
Mitchell said another change he hopes will support charitable giving in West Michigan is that the CARES Act temporarily lifted the limit corporations can deduct on qualified charitable contributions to 25% of taxable income rather than 10%.
For “average Joes,” he said the $300 tax deduction will probably be the most helpful incentive. The tax break is available on donations by cash or check up to $300 — stock transfers are exempted — and cannot be claimed on donations to political organizations or donor-advised funds. Mitchell said tax filers should plan to keep their receipts in case of an IRS audit.
Read the full article HERE.
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