There are 3 ways in which you may be able to increase your giving this year by taking advantage of a 2020 tax law created under the COVID-19 stimulus package/CARES Act.
1. As part of the federal Coronavirus Aid, Relief, and Economic Security
(CARES) Act, donors can now take advantage of a new above-the-line
deduction. This is good for one year, 2020, and is for cash
contributions up to $300 per taxpayer ($600 for a married couple)
made to certain qualifying charities, including Massachusetts
Horticultural Society. Please note that this deduction applies only to
non-itemizers. The new deduction would not apply to noncash gifts or
to gifts contributed to donor advised funds.
2. For those who itemize their deductions, the limit on deductions for
contributions, ordinarily 50% of adjusted gross income (AGI) or 60% for
cash, is suspended for 2020. For corporations, the limit on deductions
for contributions, ordinarily 10% of AGI, is increased to 20% for 2020.
3. The CARES Act did not change the rules around IRA Qualified
Charitable Distributions (QCD), which allows individuals over 70½
years old to donate up to $100,000 in IRA assets directly to charity
annually, without taking the distribution into taxable income.
However, under the CARES Act an individual can elect to deduct 100
percent of their AGI for cash charitable contributions. This effectively
affords individuals over 59½ years old the benefits similar to a QCD;
they can take a cash distribution from their IRA, contribute the cash to
charity, and may completely offset tax attributable to the distribution
by taking a charitable deduction in an amount up to 100 percent of
their AGI for the tax year.
If you are planning a large donation to Massachusetts Horticultural
Society in 2020, this may be a smart strategy as long as you are
between the ages of 59½ and 70½ and are not dependent on existing
We are grateful for your generosity!
This information is not intended as legal or tax advice.
For such advice, please consult an attorney or tax advisor.
Massachusetts Horticultural Society is a nonprofit 501(c)(3) organization. Our Tax ID number is 04-2104714