Advisor's Corner

CARES Act Expands Tax Deductions for Charitable Giving

At Arkansas Community Foundation, our tagline is “Smart Giving to Improve Communities.” In 2020, you have a unique opportunity to practice smart giving with a gift that is sure to improve communities.

While the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provided significant funding for businesses, hospitals and schools, Congress also wanted to stimulate charitable gifts to support the important work of nonprofits. Therefore, the CARES Act included a universal deduction of up to $300 for charitable gifts made in 2020. Even taxpayers who do not itemize can receive an “above-the-line “deduction for cash contributions made to charities (excluding donor-advised funds and supporting organizations) in the 2020 tax year. The deduction is limited to each “tax-filing unit” so married couples who file jointly can only deduct $300. All taxpayers are eligible, including people who use the standard deduction.

We know that each community’s needs are unique and are constantly evolving and changing. And we know that the needs will remain great, even post-pandemic.

With a long history as a trusted partner to generous Arkansans, the Community Foundation staff and local boards have been at the forefront of responding to community needs through well-researched, impact-driven grantmaking. Since 1976 the Community Foundation, through our various charitable funds – including the 29 local  Giving Tree Endowments, has granted more than  $310 Million to issues such as:  hunger initiatives fighting food insecurity, educational programs ensuring a brighter future for our youth, and many other impact-driven nonprofits serving Arkansas communities.

Please consider making your “above the line” contribution this year to your local Giving Tree.

The Giving Tree is the Community Foundation’s signature grantmaking program. Gifts to the fund are pooled together for greater impact. The Giving Tree is an investment in our future—a seed planted and nurtured by local community-minded people like you. Your gift will be magnified by the collective power of other gifts, allowing the Community Foundation to award grants to a variety of programs that improve communities.

THANK YOU in advance for your support. Stay healthy, be well.