In the face of the nation-wide pandemic crisis, Gleaners Community Food Bank is a lifeline for children, families and seniors in southeast Michigan. As the risk of hunger remains heightened, Gleaners continues to offer expanded food distribution sites reaching families and partnerships that provide emergency food boxes to our most vulnerable.
Donors play a vital role in Gleaners’ COVID-19 response efforts. With 92 cents of every dollar going to work for our programs and services, your gift provides direct relief and hope to your hungry neighbors in their greatest time of need.
There are important recent updates on charitable giving that may help you make an even greater impact. The CARES Act raises maximum charitable deductions for individuals and businesses for 2020. This is the first time Congress has passed this type of giving incentive in response to disaster or national emergency, and it acknowledges that the work of nonprofits like Gleaners are essential services.
Here are the key provisions that may affect you and your charitable goals this year:
New Tax Incentives
- Individuals who take the standard deduction are now also eligible for a charitable deduction of up to $300 in cash gifts.
- Individuals who itemize on their taxes are now limited to 100% of their gross income (previously 60%); C corporations are now limited to 25% (previously 10%).
Suspension of Required Minimum Distributions
- If you withdraw from your retirement accounts, requirements for required minimum distributions (RMD) have been waived for the 2020 tax year. Despite the RMD suspension, remember that if you are 70½ or older, you can still make a gift from your IRA or name Gleaners as a beneficiary. This remains a favorable option for many of our donors, offering a way to support Gleaners without paying income tax on the gift or the need to itemize your tax deductions.
Learn more about the tax benefits of the CARES Act and how it can help you achieve your charitable goals.