How the CARES Act gives back to Givers

I’m all for any way to encourage those not giving to give something or those who are giving very little to stepping up in their giving. Giving to the work of Jesus Christ is a life transforming action. I don’t understand it all the way, but I’ve experienced it myself and seen it in others. The CARES Act has given churches and other charities a little gift for encouraging these folks to donate or donate more. Here’s how:

• Write off $300 of Charitable Contributions without itemizing: Only about 13% of tax payers itemize their taxes and can therefore claim a deduction for charitable contributions. The CARES act now allows the other 87% to claim this deduction…up to $300. How many of your households give less than $300/year?
• For those that itemize, their giving limit was raised: Honestly I don’t know how many people are affected by this. The deduction for charitable giving used to capped at 60% of Adjusted Gross Income. The CARES Act raised that up to 100%.

Keep this in mind: People don’t give because of tax considerations. They give because they want to make the world a better place. People won’t give $300 just to save $66 on their tax bill, but that tax savings may be enough to encourage people who think well of your church to make that first gift.

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Useful Links

• Kiplinger Article on CARES Act deductions: https://www.kiplinger.com/taxes/tax-deductions/601279/do-you-qualify-for-a-300-tax-deduction-under-the-cares-act
• Giving USA 2017-2018: https://givingusa.org/giving-usa-2019-americans-gave-427-71-billion-to-charity-in-2018-amid-complex-year-for-charitable-giving/
• Giving USA 2018-2019: https://givingusa.org/giving-usa-2020-charitable-giving-showed-solid-growth-climbing-to-449-64-billion-in-2019-one-of-the-highest-years-for-giving-on-record/
• The Risa Group: http://risagroup.com/