Contribution Provisions of the CARES Act
The CARES Act added a few provisions to help charitable organizations including:
A personal deduction against income for up to a $300 monetary contribution to charitable organizations by individuals who do not itemize. This does not apply to in-kind contributions. It also does not apply to contributions to non-operating private foundations, supporting organizations, or donor advised funds.
The regular contribution rules apply including the requirement to have written documentation for individual contributions of $250 or more. Refer to IRS publication 1771.
Another benefit for individual donors is the ability to deduct 100% of their adjusted gross income in charitable contributions. This applies for 2020 only. Historically the limit was 50% and it was recently increased to 60%. Now for a limited time only, it is increased to 100%.
Before the CARES Act, corporate contributions were limited to 10% of pretax profits. Charitable contributions of food were limited to 15%.
For 2020 only, both of these limits have been increased to 25%. As in the past, excess contributions can be carried forward to future years.