2020 Charitable Deduction Options
Passed in March 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was developed to help combat the far-reaching impacts of COVID-19. The bill provides increased tax incentives for charitable giving for both individuals and corporations, signifying an intent to stimulate philanthropy throughout America. The adjusted gross income (AGI) limit for cash contributions was increased for individual donors.
For cash contributions made to charitable organizations in 2020, you can now elect to deduct up to 100 percent of your AGI (increased from 60 percent).
Unfortunately, donor-advised funds are not eligible recipients for this one-time additional 40% deduction for cash gifts. Here are the standard tax deductibility options for donor-advised funds.
| Gift Assets |
Tax Deductibility for Gifts to
Donor-Advised Funds |
| Income tax deductions for cash gifts |
Up to 60% of adjusted gross income |
| Income tax deductions for appreciated securities |
Fair market value up to 30% of adjusted gross income |
| Income tax deductions for real estate and closely held stock |
Fair market value up to 30% of adjusted gross income |
To take advantage of having 100% deductibility this year or to use Qualified Charitable Distributions* from IRAs, which also cannot be made to donor-advised funds, private foundations or supporting organizations, here are some options for you at CFT that would qualify:
Donation options:
- CFT's North Texas Community Response Fund: Support community needs in response to COVID-19. Learn more here: COVID-19 Relief.
- The Dallas Morning News Charities: Support North Texas organizations that help those who are homeless and hungry. Donations provide food, clothing, transitional housing, financial assistance, and other forms of short-term relief to individuals and families throughout North Texas.
- Field of Interest Funds: CFT has funds dedicated to individual areas of interest such as Animals, Education, Mental Health, or Collin County. CFT uses these funds to provide much needed discretionary grants to nonprofits across North Texas.
Other fund options:
- Designated Funds: Donors can set up a fund, endowed or spendable, for the benefit of one specific charity, endowed or spendable.
- Scholarship Funds: Donors can create a fund to award educational scholarships for students from a particular high school, area or region within the United States, attending a specific college or university, or many other options.
Learn more about our fund options
*A qualified charitable distribution (QCD) allows individuals who are 70½ years old or older to donate up to $100,000 total to one or more charities directly from a taxable IRA instead of taking their required minimum distributions (RMDs), thus limiting the increase in taxable income from the RMD. People who hold Individual Retirement Accounts (IRAs) are required to take RMDs each year beginning at age 72—even if they do not need or want the funds, which increases the IRA holder’s total taxable income. QCDs enable individuals to fulfill their required minimum distribution by a direct transfer of up to $100,000 to charity or to support multiple charities, as long as the sum of the distributions is within the $100,000 limit. Please note that the CARES Act waived RMDs for the 2020 calendar year.