Support Charities In Their Time of Need
Non profit disruption
Covid-19 takes no prisoners. No one is immune to the impact of the #coronavirus. It disrupted daily life for all including individuals, businesses and even nonprofit organizations. At the same time this widespread disruption has increased the demand for non profit services. Unfortunately due to stretched budgets, thin resources, and the drop in charitable donations it’s a real challenge for many nonprofits to perform their vital missions. In discussions with many clients and friends the first budget item to go - is a reduction in charitable contributions. However, to nip this pandemic in the butt it's more vital than ever to donate. We should not rely on the government alone. We each must do our part. I am not one to tell you where to donate, though I am strongly urging all to donate to the extent possible. Look at funding scientific research, health related causes, religious and social programs as these produce results that are desperately needed. Perform a little research and find a mission that connects to your heart and soul and makes you feel good by writing a check. Consider writing a note accompanying the check letting the nonprofit know why you are writing them a check and what it means to you. Your note will go a long way and find meaning to the folks opening the envelopes.
What’s also worth noting is under the recently passed #CARESAct, The government has provided a #tax incentive for those that do not itemize deductions by way of allowing an above-the-line deduction for cash #contributions of up to $300. It comes right off the top of your gross income. The intent of this provision is to help increase donations from individuals who might not otherwise donate. A second tax incentive for those that itemize tax deductions is the temporary increase in the amount that one can deduct for charitable contributions. An individual may deduct up to 100% of their adjusted gross income in cash contributions which was raised from 60% and corporations may go up to 25% of their taxable income, increased from 10%. Donations to supporting organizations (SO) and to donor advised funds (DAF) do not count. Time to open your wallets folks make a difference.
Jonathan Gassman CPA, CFP, CAP
9 East 40th Street
New York, NY 10016
T: 212-221-7067
DISCLAIMER: Any accounting, business, financial or tax advice contained in this communication, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. The opinions and analyses are subject to change at any time. If desired, The Gassman Financial Group including Gassman & Gassman CPA PC and G&G Planning Concepts Inc., would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired services. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument.
#philanthropy #charity #IRS #donations #Covid19