CARES Act Increases Deductions for Charitable Contributions – American Film Institute

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CARES Act Increases Deductions for Charitable Contributions

As a non-profit, AFI relies on the support of movie fans – like you – who believe in our mission to empower storytellers and inspire audiences. The movies have never been more important to us as a source of inspiration and entertainment than in this time of uncertainty. We are deeply appreciative of your commitment to AFI during these times and want to share how some of the legislation in the new “CARES” Act may help you deduct your donations to AFI.

For those who don’t itemize their taxes…

The bill allows for up to $300 in charitable contributions to be an above-the-line deduction, meaning you don’t have to itemize to claim the deduction. Contributions must be cash donation(s) to qualified charities.

For those who do itemize…

The bill increases the cap on annual giving from 60 percent of adjusted gross income to 100 percent.

Here is a quick explainer from the New York Times:

As part of the bill, donors can deduct 100 percent of their gift against their 2020 adjusted gross income. If you have $1 million of income, you can give $1 million to a public charity and deduct the full amount in 2020. The new deduction is only for cash gifts that go to a public charity. If you give cash to, say, your private foundation, the old deduction rules apply. And while the organizations that manage donor advised funds are public charities, you do not get the higher deduction for donating cash to your donor advised fund. If your assets are substantial enough that you can give more than your income this year, you won’t lose the deduction for the excess amount. You can use it next year, as has always been the case.

For corporate charitable giving …

The bill raises the annual limit from 10 percent to 25 percent of taxable income for corporations. 

If you would like to support AFI and take advantage of the new charitable giving deductions, please visit our support page or email Membership@AFI.com.

Comments (4)

Mark Wax

Does this apply to the creation of a ‘CLT” Charitable Lead Trust, ie; a split interest trust? One does not need to use a DAF to make the gifts of a future interest in this case.



    lswanbeck

    It appears that gifts to split-interest entities such as charitable remainder trusts and charitable lead trusts are not eligible, but we encourage you to speak with a tax advisor as laws regarding charitable gift deductions often change frequently.



chester rorvig

there is a $300 charitable deduction in the new CARES act.
Is this 300 for each person, so a total of 600, for people filing a joint return?



    lswanbeck

    Hi Chester, thanks for reaching out. Right now it is $300 for both individuals and joint filers who do not itemize.


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