Pediatric Brain Tumor Foundation
Working to eliminate the challenges
of childhood brain tumors
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How the CARES Act Impacts Your Charitable Giving for 2020

04/23/20

Although we are having to adjust to an ever-changing landscape because of COVID-19, the needs of kids with brain tumors do not change. Today we recognize that these unsettling times, with the advent of the new COVID-19 virus, have severe ramifications on the children and families we serve. But rest assured, we are committed to supporting these families and the research community despite this new challenge.

With that said, we can’t do it alone. Like many nonprofits, we rely heavily on community events to drive engagement and fundraising. The coronavirus has led to the postponement and cancellation of important fundraising events, which in normal years have provided funding that enables us to help families facing economic hardship and fund research projects.

Kids with brain tumors need you now more than ever, and the CARES Act, signed into law on March 27th, includes the following provisions that offer deduction incentives for charitable giving this year.
If you are an individual or corporate donor who is able to help pediatric brain tumor families in crisis, please contact us at donations@curethekids.org. You can also donate securely online at www.curethekids.org/givenow.

Individual Donors

New $300 Deduction Available for Qualified Charitable Donations in 2020: The bill makes a new deduction available for up to $300 per taxpayer ($600 for married couples) in annual charitable contributions. This is available to people who take the standard deduction when filing their taxes (for taxpayers who do not itemize their deductions). It is calculated by subtracting the amount of the donation from your gross income. It is an “above-the-line” deduction to income that will reduce your adjusted gross income, thereby reducing taxable income. To qualify, you would have to give a donation to a qualified charity like the PBTF.

Individuals’ Charitable Deduction Limit Increased Up to 100% for 2020: As part of the bill, individuals who itemize can elect to deduct cash contributions up to 100% of their 2020 adjusted gross income on itemized 2020 tax returns. This is up from the previous limit of 60%.

The new deduction is only for cash gifts that go to a public charity such as the PBTF. Deduction limitations for charitable gifts to donor-advised funds, private non-operating foundations, and supporting organizations were not changed under the CARES Act. These new limits do not apply to gifts of appreciated stock.

Required Minimum Distributions Waived for Most Donors in 2020: Donors directing a qualified charitable contribution from their IRA to charity this year (up to $100,000 per individual) will still be able to reduce their taxable IRA balance. This allows all taxpayers, itemizers and non-itemizers alike, to direct gifts from their IRA to charities in a tax efficient manner. However, required minimum distributions (RMD) for individuals over age 70.5 are suspended until 2021, including distributions from defined benefit pension plans and 457 plans.

Corporate Donors

Corporations’ Charitable Deduction Limit Increased Up to 25% for 2020: For the 2020 tax year, corporations that itemize can deduct up to 25% of the taxpayer’s taxable income for any cash contributions made to qualified charitable organizations. Deductions for cash donations were previously limited to 10% of the taxpayer’s taxable income.  

The new deduction is only for cash gifts that go to a public charity such as the PBTF. Deduction limitations for charitable gifts to donor-advised funds, private non-operating foundations, and supporting organizations were not changed under the CARES Act. These new limits do not apply to gifts of appreciated stock.

If you need help determining how to support the PBTF’s local and national efforts related to pediatric brain tumor families during the COVID-19 pandemic, please contact us at donations@curethekids.org. You can also donate securely online at www.curethekids.org/givenow.

This information is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.