SB AdvisoryMay 20, 2020 update: Keep up with the latest from Stony Brook about the coronavirus situation.  More information
Skip Navigation

The CARES Act and New Charitable Giving Opportunities in 2020

Passed in late March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act provided over $2 trillion in economic relief to taxpayers, businesses, and nonprofits. The Act also contained a number of changes to tax policy related to charitable gifts of cash to public charities like the Stony Brook Foundation: 

Non-Itemizers Now Eligible for New $300 Charitable Deduction : Taxpayers who take the standard deduction (non-itemizers) typically do not qualify for itemized charitable deductions. For these non-itemizing individuals in 2020, a $300 above-the-line adjustment will be made to reduce the donor’s adjusted gross income and thereby reduce taxable income. 

Increase in Adjusted Gross Income Limit from 60% to 100%: The usual deduction limit for cash gifts by individuals to public charities is 60% of adjusted gross income (AGI). In 2020, gifts of cash are deductible to 100% of AGI. 

Increase in Corporate Charitable Deduction from 10% to 25%: The taxable income limit that applies to cash contributions by corporations has been increased from 10% to 25% for 2020.

Waiver of Required Minimum Distribution (RMD) for Retirement Plans: Most taxpayers will not have a RMD from their retirement plans in 2020, including IRAs, 401(k)s, 403(b)s and most other defined contribution plans maintained by an employer for individuals. However, making a Qualified Charitable Deduction this year will still enable both itemizers and non-itemizers to contribute up to $100,000 from their IRA to the Stony Brook Foundation in a tax-efficient manner or name the Foundation as a beneficiary.

As always, please consult a tax adviser concerning your specific situation.

For more information about giving to Stony Brook, visit this link or contact