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How Nonprofit Organizations Can Benefit From the CARES Act

April 03, 2020

For taxpayers who itemize, deductions for charitable contributions are typically subject to a limit of 50 percent of adjusted gross income. However, the limits have been lifted for 2020 to up to 100 percent of AGI for giving to certain types of nonprofit organizations; importantly, donor-advised funds and many private foundations are excluded.

“With donor-advised funds, the money might sit there for a while,” said Louis Vlahos, a partner at Uniondale-based Farrell Fritz. “The goal of the program is to encourage giving to charities who can immediately use it.”

In addition, Vlahos added, the caps for corporate giving have been bumped up from 10 percent to 25 percent of income for 2020.

“It’s targeted to help nonprofits, which are being hit as much as the rest of us are being hit, but when they can’t go out and help folks, it has a domino effect,” Vlahos said.

However, he added, with many businesses struggling and individuals being furloughed or having their salaries cut, “it’s questionable how many of them are going to have enough security to make contributions to charity.”

To read the full article, click here.

  • Related Practice Areas: Not-for-Profit, Tax
  • Featured Attorneys: Louis Vlahos
  • Publications: Long Island Business News