There are new tax incentives in place to allow you to help those who are suffering as a result of the pandemic and are seeking assistance from Catholic Charities.
Smaller gifts, up to $300, now 100% deductible even for those using the standard deduction. Previously only those who itemized were able to use a charitable deduction. Now, individuals can deduct up to $300 whether or not you itemize deductions. This deduction can be used for contributions of cash, credit card, checks, but not for gifts of stock.
Larger gift deduction raised up to 100%. The stimulus package allows you to deduct up to 100% of your AGI for the year 2020. Donors who use this provision must tell the IRS. This is helpful for making major gift donations and could allow you to make charitable gifts to help eliminate your tax burden. Any contributions in excess of total AGI may be carried forward for up to five additional years.
Corporations rewarded for giving. Usually giving is limited to 10% of taxable income for a corporation. That limit has been increased to 25% of the taxable income, making charitable gifts much more attractive for businesses not experiencing losses from the pandemic.