The Long Road Back
The Long Road Ahead
“Many donors are struggling financially and that means uncertainty for Peoria Rescue Ministries, too,” said Dan Wolf, Development Director. “The CARES Act offers 2020 tax incentives that support donors in their efforts to give generously and meet their own family’s or business’s needs.”
Peoria Rescue Ministries sees continuing challenges ahead as their donors and volunteers grapple with unemployment, stay-at-home orders and other issues related to the COVID-19 coronavirus pandemic.
“Under stay-at-home orders and social distancing, our volunteer force is no longer able to supplement our staff and services as they did prior to the pandemic,” said Lori Skinner, engagement coordinator for PRM. “This means our staff is working extra shifts or subbing in other areas of service to fill in gaps.”
Peoria Rescue Ministries sees continuing challenges ahead.
PRM’s services could also be challenged due to unemployed donors who must choose between supporting the nonprofit they love and their own loved ones.
The CARES Act, signed into law March 27, includes tax incentives for both donors who itemize and those who take the standard deduction. “The Act also provides tax incentives for businesses who give,” said Wolf. Specific information about the CARES Act and charitable deductions can be found on several national and local websites, including the National Law Review, National Christian Foundation, and Tax Foundation.
“We encourage everyone to talk to their financial or tax advisors before giving,” said Wolf. “And to hold the nonprofits they support to the highest standard of stewardship. Donors are giving sacrificially, so it’s important to know the charities they give to are transparent and efficient.”
To give online, visit this link. Or mail your gift to Peoria Rescue Ministries, 601 SW Adams, Peoria, IL 61602.
Giving Tips for a Pandemic
- Gifts up to $300 are 100% deductible, even for those using the standard deduction. This means donors can deduct up to $300 per year whether they itemize deductions or not. Contributions by cash, credit card or check are eligible; gifts of stock are not.
- The maximum charitable deduction is raised to 100%. Previously individuals could deduct up to 60% of their adjusted gross income (AGI) for charitable deductions of cash (not gifts of stock). The stimulus package allows individuals to deduct up to 100% of their AGI in 2020. This is helpful for donors making major cash gifts, reducing their overall federal tax burden. In addition, donations in excess of AGI may be carried over to future tax filings for up to 5 additional years.
- Corporations have greater incentive to make charitable gifts. Previously, charitable giving for a corporation was limited to 10% of taxable income. The limit has been increased to 25% of taxable income, providing larger charitable gifts a greater tax and philanthropic incentive for business donors.