The Coronavirus Aid Relief and Economic Securities Act, also known as the CARES Act includes significant tax relief and charitable giving benefits. For 2020 only, the Act provides incentives for both individuals and corporations by increasing the available deductions on qualified charitable contributions to:
- 100% of their adjusted gross income for individual taxpayers who itemize their deductions. Beyond the scope of the CARES Act, the deduction for qualified charitable contributions made by itemizing individual donors is limited to 60% of their adjusted gross income.
- 25% of taxable income for corporations. Up from the 10% limit which is generally applicable for corporations outside of the CARES Act.
Contributions made to Compass qualify for this benefit and need to made within the 2020 calendar year.