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Coronavirus and the CARES Act: The Impact on Your Taxes

Posted by Roland C Warren on Apr 7, 2020 10:38:16 AM

 

The terrible economic fallout from the coronavirus pandemic continues to unfold. Many
businesses are suffering significant setbacks, or even failing altogether. The impact on non-
profit organizations is a little less clear right now, but given that non-profits are supported, in large measure, by donors who are financially stable, there is certainly reason to be concerned.

Accordingly, the federal government is taking steps to fend off what could be catastrophic
losses for non-profits, as they rely on the generosity of a public that is getting hit harder and harder by bad economic news. One of the most significant steps the federal government has taken are provisions in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that provide significant tax incentives to stimulate increased charitable giving in the next few months to non-profit organizations. Indeed, there is an urgency needed.

We at Care Net are working harder than ever during this crisis. The need for compassion, hope, and help among women and men facing pregnancy decisions has not diminished – if anything, it may be increasing during a time of isolation and uncertainty. Calls to our national hotline providing pregnancy decision coaching, Pregnancy Decision Line, continue. While some of our 1,100 affiliated pregnancy centers have had to close their “physical” doors, they have left their “virtual” doors open because their services are still deeply needed in their communities. They continue to serve people over the phone or online.

Indeed, COVID-19 has actually highlighted the necessity of Care Net’s ministry. The abortion
industry, and the spiritual forces behind it, rely on people feeling frightened, isolated, alone, hopeless, and desperate. This health crisis has augmented those feelings in the public. The abortion lobby – as it fights to stay open – wants to exploit this. Thus, Care Net may be more important than ever.

But Care Net is built for this kind of crisis. It is our “business” to surround frightened women and men with compassion, hope and help. It is our desire to share when others are hoarding. It is our call to engage while others are isolated. And because of Pregnancy Decision Line, we can continue to provide this love and support even when “brick and mortar” is not available.

Accordingly, the CARES Act does a few important things to help you have an impact on those that Care Net serves now:

  • Charitable gifts up to $300 are now 100% deductible. Previously, you could only use the charitable giving deduction if you itemized your deductions. Now, the CARES Act allows you to deduct up to $300 of charitable gifts, given in cash, whether you itemize or not. Here is a helpful article on Yahoo! Finance.
  • The deduction for gifts over $300 has been raised to 100% of your Adjusted Gross Income. Under the CARES Act, donors can get a federal income tax deduction for charitable contributions of up to 100% of their Adjusted Gross Income (AGI) for 2020, replacing the previous 60% of AGI charitable contribution limit. Charitable contributions in excess of this amount can be carried forward for five years subject to the 60% of AGI limit in those years.

The intent of these changes is to create an immediate, positive impact on nonprofit organizations like Care Net and it’s life-saving work. Indeed, these new laws make your charitable giving go even further. Together, we can ensure that every pregnancy center, every church, and our national hotline remain equipped to meet the increasing demand for pro-life support that this pandemic will bring. 

Thank you for standing with us in these difficult days. May God bless you and keep you safe from harm.

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