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Special Update: CARES Act Tax Incentives Extended with a Small Boost

January 01, 2021

The nonprofit community has been given a year-end gift: A couple of key provisions of the CARES Act were just extended into the new year (and, in one case, increased). Let’s take a look at what the new stimulus package means for the Catholic Foundation in El Paso and turn that calendar page to 2021.

Tax Incentives for People to Give to Charity

1. An expansion of the universal charitable deduction for cash gifts

The universal charitable deduction has not only been extended but given a well-deserved upgrade. The new deduction is $300 for single filers and $600 for married couples filing jointly. This is available to taxpayers who take the standard deduction. This tax incentive is available for cash gifts to qualified charities (but not to supporting organizations or donor advised funds).

2. An extension of the cap on deductions for cash contributions

Contributions to public charities are generally limited to a percentage of a taxpayer’s adjusted gross income (AGI). The CARES Act lifted the cap on annual contributions for those who itemize, increasing it from 60% to 100% of AGI for 2020 (and now for 2021). Any excess contributions available can be carried over to the next five years. For corporations, the law raised the annual limit from 10% to 25% of taxable income.

Thank you for all you do. Here we come, 2021!

You may be able to increase your giving in 2021 (and take a deduction) by taking advantage of the universal deduction. Donate here. You can contribute with a credit card on the Foundation's website or mail a check to Foundation for the Diocese of El Paso, 499 St. Matthews Street, Building G, El Paso, Texas 79907, Attn: Fund Name. For more information and to discuss other ways to give, please contact Major Gifts Officer Sofía Larkin at slarkin@elpasodiocese.org or directly at 915-433-2003. 


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