News & Updates

 

Wise Giving Wednesday: $300 IRS Tax Deduction

Dec 2, 2020

Recently, the U.S. Internal Revenue Service sent a reminder notice about tax deductions for charitable contributions made in 2020. Cash donations of up to $300 made this year will be deductible for individuals when they file their taxes in 2021 even if they don’t itemize on their tax returns. So, if tax payers decide to take the standard deduction, they will still be able to deduct up to $300 and lower their taxable income by that amount. This change in the tax law was included in the Coronavirus Aid, Relief and Economic Security (CARES) Act that was passed earlier this year. This deduction is for contributions made by check, credit card or debit card but does not include donations of securities, household items, clothing or other in-kind gifts.

Two years ago, when the standard deduction was raised to $12,000 per individual or $24,000 per couple, many felt that this would result in fewer households contributing since there would be less incentive to itemize on tax returns. In 2019, these deductions were increased to $12,200 and $24,400 respectively. As reported in a previous Wise Giving Wednesday, results were mixed with smaller charities experiencing donation reductions while larger ones saw growth.

Even if you did not have a chance to participate in GivingTuesday which took place on December 1, you still have an opportunity to donate in 2020 and take advantage of this special $300 tax benefit. Of course, we hope donors will also take the time to visit Give.org to verify if the organization is a BBB Accredited Charity (i.e., meets the 20 BBB Standards for Charity Accountability.) If one has other questions on charity tax deductibility, see the latest version of  IRS Publication 526, Charitable Contributions. Here is a link to the 2019 edition


Video of the Week

This week’s video is a message asking that you consider supporting BBB’s Give.org this holiday season.  


Recent Reports

We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

Finally, remember to let us know by going to www.give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.

H. Art Taylor, President & CEO
BBB Wise Giving Alliance