Consolidated Appropriations Act 2021

Consolidated Appropriations Act 2021: How does it impact your giving this year?

The Consolidated Appropriations Act, which was signed into law in December 2020, provided an additional injection of stimulus into the economy, including relief for businesses and non-profits. There were also specific provisions that were extended from the CARES Act of March 2020 for those who support their favorite charities.

Specifically, the 3 provisions that may impact your giving through the end of calendar year 2021 include:

1. You may deduct cash donations up to 100% of adjusted gross income through December 31, 2021, if you itemize your deductions. The CARES Act provision for cash donations was set to expire on December 31, 2020 but has been extended. The limit for cash contributions was 60% of adjusted gross income prior to both Acts being passed, which may increase the opportunity to give more this year to help offset income.

2. For those who do not itemize, the above-the-line deduction was extended through December 31, 2021 as well, with an added boost. Non-itemizers can now deduct $300 per filer ($600 for Joint filers) as an above-the-line deduction. This is an increase from the CARES act which was limited to a $300 deduction per tax return, including joint filers.

3. The Consolidated Appropriations Act also extended giving incentives for corporations as well. Through 2021, corporations can give up to 25% of their taxable income through cash donations or food inventory. This is an increase from the 10% deduction allowed against taxable income prior to these Acts being passed.

The Focus on the Family Planned Giving team is here to help you discover how you can maximize your giving in a tax-savvy way.

Call today to speak with one of our experienced team members to find out if the Consolidated Appropriations Act 2021 can benefit you.

800-782-8227 or email at [email protected]

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