What is the CARES Act?
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a $2 trillion stimulus bill passed by Congress in response to COVID-19. This bill provides special tax incentives and encourages Americans to continue making charitable gifts to nonprofits like 4‑H.
How Does the CARES Act Apply To You?
While most donations aren’t inspired by the tax benefits alone, the advantages of the CARES Act may inform how you make your gift to 4‑H. Here are three examples of how the CARES Act can help your philanthropic dollars go further:
- UNIVERSAL CHARITABLE DEDUCTION: 90% of households don’t itemize their charitable deductions. If you’re one of them, you’ll be excited to know that you can still deduct your gift to 4‑H when filing your taxes in 2021! The CARES Act states that all donors can claim up to $300 per taxpayer ($600 for married filing jointly) for charitable gifts made in 2020, whether they itemize or take the standard deduction. That means a lower tax bill for you, and much-needed support for the youth 4‑H serves!
- FROM RECOVERY REBATE TO GENEROUS GIFT: If your household income hasn’t been affected by COVID-19 or if you’re drawing on retirement assets, you may find that you don’t need the full amount of the stimulus check you received in the spring. Eligible households received payments of up to $2,400 for joint filers and an additional $500 per child. These tax-free payments – when made into a charitable gift – can turn into sizable tax deductions!
- NO ADJUSTED GROSS INCOME CAPS: If you’re considering a major gift to 4‑H, the CARES Act has eliminated adjusted gross income caps on charitable contributions made in 2020. This applies to new gifts and to pre-payments of existing multi-year pledges. That means you can give to your heart’s content, make a transformational impact on the lives of youth, and significantly reduce your taxable income!
Help Kids When They Need You Most
If you’ve already made a gift to 4‑H this year or if you’re still considering a donation, please know that your support is critical in helping us provide youth with the resources they need to navigate the COVID-19 crisis. A gift to the FOURWARD Fund reaches youth in every county across the country – providing learning materials and caring adult mentors that kids desperately need right now. Your donation also equips 4‑H educators, program leaders, and volunteers as they work to close the growing opportunity gap in America.
You can give all youth the opportunities they need to reach their potential and thrive. Now more than ever is the right time to make a difference. Click here to donate to the FOURWARD Fund today.
We’re excited about how the CARES Act can benefit our generous, kindhearted donors and encourage greater support for youth in need. But while 4‑H is proud to be the nation’s leader in positive youth development, we can’t claim to be an expert in tax advice, too. To learn how the CARES Act can apply to your specific situation, please consult with a tax professional or financial advisor.