Giving Tuesday: Everyone gets a tax break on the first $300 they donate to nonprofits in 2020
IPA and others in the philanthropy sector have long been pushing for a permanent universal tax deduction so Americans who don’t itemize their taxes can get tax benefits from their charitable donations.
As part of the CARES Act, there is now such a universal deduction.
A provision in that act allows any taxpayer to deduct up to the first $300 they donate to nonprofits in 2020. The National Council of Nonprofits is currently advocating that Congress raise that dollar amount and extend it to at least 2021, since the COVID-19 recovery won’t be done by December 31.
Millions of Americans are facing food and housing insecurity, and the nonprofits they might turn to are facing financial hardships themselves.
Nonprofits are the third largest employer in the country, and as in almost every industry, the pandemic and lockdowns have hit its workforce hard. Before March, nonprofits nationwide employed 12.3 million people—more than airlines or the manufacturing industry. So far into the pandemic, that industry has lost nearly 1 million jobs, and even more are at risk after the money from PPP loans has run out. Nonprofits have added expenses this year too, from all the equipment needed to keep their volunteers safe, such as masks and sanitizer, to the cost of having to transition to online operations.
If you are in a position to give, please do so today on this #GivingTuesday.