IRS tax tip for Year-End Giving


The 2020 Cares Act extends enhanced benefits to charitable contributions in 2021.

New Charitable Giving Incentives Help Donors to Give More in 2021

Donors are incentivized to give more to nonprofit organizations through important tax incentives available through December 31, 2021! The universal charitable deduction, available to the growing number of taxpayers who do not itemize their returns, was created under the 2020 CARES Act, and was extended through 2021 and expanded so that single filers may deduct up to $300, and joint filers will be eligible for a $600 deduction for cash contributions. Also for the calendar year 2021, taxpayers who itemize their returns will see the limit on the total percentage of Adjusted Gross Income (AGI) eligible for the charitable deduction lifted to 100%, and the limit on corporate contributions has been raised to 25%.

An IRS Tax Tip issued on September 28 spells out how these giving incentives work and can be a very helpful resource for donors that may be unaware of these important incentives to give more. TCG’s charitable giving advocacy campaign calls on Congress to enact policies to permanently strengthen charitable giving incentives.