Giving & Tax Guide: Support your favorite nonprofit this holiday season, and take advantage of these tax breaks

In 2020, our community faced a challenge unlike anything we've faced before. The cumulative impact of the pandemic has affected every corner of our economy and community. As we come to the end of year, we would like to thank all the donors that have stepped up during this difficult time and encourage all of you to support your favorite nonprofit this Holiday Season.

Tucson is home to more than 4,000 nonprofits and COVID-19 has affected the capacity and sustainability of each and every organization. From education to the environment, affordable housing to mental health services, animal welfare to the arts, no organization will emerge unscathed.

According to the most recent survey from the Alliance of Arizona Nonprofits, 41% of responding organizations have furloughed both part-time and fulltime employees, reduced salaries and wages, and cut staff hours. Nearly half of those responses were from health and human services organizations that provide critical resources and services to Southern Arizona's most vulnerable residents. In addition, 10% of responding organizations shared that they are "highly likely" to close (as of October 30, 2020).

Recognizing the vital role that that nonprofit organizations play in every community, the Federal CARES Act has several provisions for both individual and corporate donors to encourage charitable giving.

New $300 Deduction for Qualified Charitable

Donations

Individuals who take the standard deduction can now claim an above-the-line tax deduction for cash donations up to $300 to qualified charitable organizations.

Corporations' Limit Increased to 25% for 2020

For the 2020 tax year, corporations can deduct up to 25% of the taxpayer's taxable income for any cash contributions made to qualified charitable organizations. Deductions for cash donations were previously limited to 10% of the taxpayer's taxable income.

60% of AGI Limit Suspended for 2020

The usual deduction limit for cash gifts to public charities is 60% of adjusted gross income (AGI). For the 2020 tax year, individuals can deduct cash contributions made to qualified charitable organizations up to 100% of their adjusted gross income. Gifts may be for any charitable purpose and are not limited to gifts for COVID-19 relief efforts.

Give the gift of generosity this holiday season. Contact your favorite nonprofit and ask how you can help. Together, we can continue to support the vital nonprofit organizations in our community that support those in need, as well as enrich our lives and make Tucson a special place to live.

If you need help determining how to best support local relief efforts, please don't hesitate to call or email our team. You can reach us at 520-770-0800 or by email at philanthropy@cfsaz.org.

To learn more about CFSA's services and impact, please visit cfsaz.org.

J. Clinton Mabie is president and CEO of the Community Foundation for Southern Arizona.

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