Many American charities are experiencing a decline in giving as the country finds itself grappling with the COVID-19 pandemic.
In response, Congress included a provision in the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide some relief for charitable organizations.
Section 2204 of the CARES Act permits eligible individuals who do not itemize deductions to deduct $300 of qualified charitable contributions as an above-the-line deduction, i.e., as an adjustment in determining adjusted gross income (AGI), for tax years beginning in 2020.
To qualify for the deduction, contributions must be in cash. Noncash contributions of property are not allowed as an above-the-line deduction. However, these contributions are still available for individuals who itemize their deductions. Learn more.