Coronavirus Relief Act and Charitable Giving

The Coronavirus Relief Act (Coronavirus Response and Relief Supplemental Appropriations Act of 2021), a part of the consolidated appropriations act passed by Congress in December 2020, extends several tax benefits designed to encourage charitable giving by individuals. These benefits were initially created as part of the 2020 CARES Act. 

We hope you will find this information helpful as you consider a gift to Cranbrook. Your support during this uncertain time will help preserve Cranbrook as a community where education is prized, the human spirit is nurtured, and innovation and creativity are valued.

For Non-Itemizers: $300 Cash Contribution Deduction Remains Available for 2021
Continuing in 2021, individuals who do not itemize their deductions (about 90% of all households) can claim a deduction for up to $300 ($600 for a household filing jointly) in charitable giving. This extended deduction (on top of the standard deduction) reduces a donor’s adjusted gross income, resulting in reduced taxable income and tax savings.

For Itemizers: Continuation of Higher Charitable Deduction Limits
Individuals who itemize are able to deduct cash gifts of up to 100% (previously 60%) of their adjusted gross income, effectively eliminating their federal tax liability in 2021. This increase in gift deductions may be used to make new gifts or to prepay existing multi-year pledges.

It’s important to note that these charitable giving incentives only apply to cash donations made to public charities. Non-cash gifts (stock, real estate, or personal property) and gifts to donor-advised funds or private foundations will not benefit from these Coronavirus Relief Act provisions.

For more information regarding opportunities for charitable giving in recent legislation, please visit Planned Giving at Cranbrook.

The above is for informational purposes only and is not intended to provide and should not be relied on for tax, legal, or accounting advice. Donors should consult their tax, legal, and accounting advisors about their particular circumstances.