The CARES Act, (Cornoavirus Aid, Relief, and Economic Security Act), signed into law on March 27, 2020, includes an expanded charitable giving incentive to support the essential services that nonprofits throughout the United States provide. It is the first time Congress has passed this type of giving incentive in response to disaster or national emergency.
There are a few key provisions of the new CARES Act that can make giving to Can Do Canines easier for you! We are so grateful for your generosity, which touches—and changes—so many lives. We hope this information will help explain the new charitable giving incentive and will inspire you to make a donation today!
Universal Charitable Deduction
The CARES Act created a “universal charitable deduction,” for cash donations up to $300 to a qualified organization. This means if you donate $300 to Can Do Canines this year, in 2020, your gross income will be reduced by $300 AND you can still claim the standard deduction on your 2021 tax return.
We ask that you consider giving a one-time $300 donation to take advantage of this tax break.
For those who do itemize their deductions, the new law allows for cash contributions to qualified charities such as ours to be deducted up to 100% of your adjusted gross income for the 2020 calendar year.
Required Minimum Distributions (RMD) and Qualified Charitable Distributions (QCD)
The CARES Act temporarily suspends the requirements for required minimum distributions (RMD) for the 2020 tax year. Though RMDs are waived, IRA owners over age 59 ½ are still free to take distributions from their IRA and use this money for charitable contributions. These distributions are tax deductible, if you itemize your taxes.
IRA owners older than age 70 ½ may make a tax-free Qualified Charitable Distribution (QCD) in any amount up to $100,000 if the gift goes directly from the IRA to Can Do Canines. This type of contribution does not affect your taxable income for the year and is most appropriate for IRA owners over age 70 ½ who do not itemize their taxes.
Learn more about the CARES Act and how this can impact your charitable giving here: https://www.cafamerica.org/cares-act-impacts-giving/.
Other helpful resources:
Please consider Can Do Canines as we want to continue to provide assistance dogs to people with disabilities and children with autism at no charge.
*This information is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.
Tax Information: Can Do Canines is registered as a 501(c)(3) non-profit organization. Contributions to Can Do Canines are tax-deductible to the extent permitted by law. Can Do Canines’ tax identification number is 41-1594165.
To make a donation, please contact Janet L. Cobus, Development Director at 763-331-3000 x 153.
Can Do Canines
9400 Science Center Drive
New Hope, MN 55428