If you are planning your annual or one-time donation to Rawhide this year, we have some exciting news for you!

Congress recently passed its latest of the coronavirus relief packages called the Coronavirus Aid, Relief and Economic Security (CARES) Act. It was enacted to provide more than $2 trillion in economic assistance to individuals, families, small businesses and nonprofits affected by the economic downturn and global pandemic.

The exciting news for donors? The CARES Act also offers a new tax benefit for cash donors!  


$300 Charitable Deduction

Charitable giving tax breaks

Previously, charitable contributions could only be deducted if taxpayers itemized their deductions. But this year, taxpayers who do not  itemize deductions and make cash contributions can take a charitable deduction of up to $300 on their 2020 federal tax return, according to the IRS.gov. Only religious, charitable, educational, scientific or literary organizations qualify for this tax break, which includes Rawhide. 

Charitable Giving Deduction Cap 

Those who itemize their deductions and make cash contributions to organizations like Rawhide may be deducted up to 100% of your adjusted gross income for 2020, increased from 60%. Corporations can deduct charitable donations up to 25% of taxable income, increased from 10%.

IRA Distribution Changes

$300 tax break

If you are over the age of 70.5, you are not required to adhere to the Required Minimum Distribution rules in 2020 that you may have in previous years. But Qualified Charitable Distributions (QCDs) are still allowed. Under QCD rules you can make a tax-free distribution of up to $100,000 from your IRA directly to a qualified charity, such as Rawhide.

These changes may only be available for 2020, so now is a great time to consider donating to Rawhide so we can continue transforming young lives for many years to come! 

If you have any questions about donating and receiving this tax break through the CARES Act, see our sources listed below or reach out to your attorney, CPA or financial advisor to find out how these changes will affect your charitable giving goals.