Charitable Giving and the Cares Act

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (S. 748) provides $2 trillion in funding for businesses, hospitals, schools, social support programs, and direct payments of up to $1,200 for many adults. There are also new tax advantages to charitable giving included in the Act. Some of the key provisions are highlighted below.

If you don’t currently itemize your charitable contributions, you can now get a charitable deduction on gifts of up to $300.

On your 2020 tax return, you will be able to take an “above the line” deduction of up to $300 for charitable contributions. One of the easiest ways to take advantage of this is through the Coronavirus Response Fund at BGCF (in partnership with United Way of the Bluegrass). Visit to learn more.

We can also direct you to other giving opportunities, both through the Community Foundation and outside. Leave us a message at 859.225.3343 and we will get back to you ASAP.

As we understand, this deduction is only available to those who do not itemize charitable contributions, and does not apply to gifts made to donor advised funds.

Consider paying forward a portion of your check from the federal government to assist in response efforts.

Many Americans will soon be receiving checks of up to $1,200. For many, these dollars are much-needed to purchase food, pay rent, or secure other essential goods and services. If you are not among those experiencing financial hardships at this time, we can help turn those dollars into action by connecting you to agencies and charitable funds that are focused on addressing basic needs at this time.

You and your business can now give more to charity, and consider more of it as a charitable deduction.

The existing caps on charitable giving have been lifted in 2020 for gifts of cash:

  • From 60 percent of adjusted gross income to 100 percent for individuals
  • From 10 percent to 25 percent for corporations
  • From 15 to 25 percent for food donations from corporations

There are no required minimum distributions from retirement accounts in 2020.

If you are 72 or older, you will not have to take a distribution from your IRA this year. However, if you are accustomed to taking a Qualified Charitable Deduction (QCD) to make a gift to charity, you will still be able to do this.

For further information about these and other tax strategies, we encourage you to consult a tax professional. To make a gift to a fund at Blue Grass Community Foundation, please contact us at [email protected] or 859.225.3343.

This is not intended to be tax advice. As always, we encourage you to consult with your tax professional to determine the best strategies for your situation.