Passed on March 27, 2020, the CARES Act—Coronavirus Aid, Relief, and Economic Security Act—includes provisions to support charitable giving:
The CARES Act applies a temporary universal charitable deduction for all taxpayers of up to $300. Ninety-two percent of taxpayers take a standard deduction rather than itemizing their charitable giving—under the new provision, taxpayers who do not itemize can now directly benefit from their charitable cash donations.
For 2020, there is no limit on cash contributions to charities making them fully tax deductible. The CARES Act increases the typical limit of giving from 60% of your adjusted gross income to 100% of your AGI.
The CARES Act increases the maximum that corporations can donate to charity from 10% to 25% of their adjusted income.
Among additional provisions to protect employment and support the economy, the CARES Act puts communities first by empowering individual and corporate donors to continue giving to the charities that matter to them.