Give Financially

AsianAccess logo 2018tag white shadow


CARES Act Charitable Donation Provisions

CARES act small

Did you know?

  • Even if you do not itemize deductions on your federal taxes, you can deduct up to $300 of charitable gifts made in 2020.
  • If you do itemize deductions, you can deduct up to 100% of your Adjusted Gross Income (AGI) for charitable gifts made in 2020.
  • If you are at least 59½, you may take a distribution of any amount from your IRA or 401k, give the same amount to a qualified charity, and avoid paying any federal income taxes on the distribution.

These provisions and more are included in the CARES Act recently passed by Congress in hopes that it will stimulate charitable giving in 2020. This applies only to gifts made in 2020, so you must act by December 31, 2020 to take advantage of these temporary changes.

What does this mean for you?

If you do not fill out schedule A on your federal income tax forms, you can get a deduction as if you did for gifts totaling up to $300 to qualified charities like Asian Access.

If you do fill out schedule A, you may now deduct up to 100% of your AGI for gifts made to qualified charities. This deduction allowance is an increase from 60% in previous years. Qualified charities include public charities and churches, but do not include private foundations, supporting organizations, or donor advised funds, commonly called giving funds. As a public charity, Asian Access is a qualified charity.

Should you decide to give more than 100% of your AGI in 2020, you may carry forward the deduction for up to five years.

If you are at least 70½ years old, you already had the benefit of making an IRA charitable rollover contribution up to $100,000 as a satisfaction of your required minimum distribution. That rule was not changed by the CARES Act.

But if you are between 59½ and 70½, the CARES Act allows you take a distribution from your IRA or 401k, contribute the same amount to a qualified charity, and take a deduction of 100% of the gift on your federal taxes. An IRA or 401K distribution is taxed as ordinary income. So, if you take a distribution of $50,000, that could put you in a higher income tax bracket and significantly increase your federal tax. But if you give the $50,000 to one or more qualified charities, you can take a deduction of 100% of it, preventing a higher tax bracket and totally offsetting taxes on the distribution.

Corporations are also being encouraged to give by the CARES Act. Corporations can now deduct up to 25% of their taxable income for gifts made to qualified charities in 2020, an increase from 10%.

Several important things to keep in mind when making your giving decisions:

  • The CARES Act provisions apply only to federal taxes. Most states have not changed their rules regarding charitable contributions. Therefore, your deduction allowance for a charitable gift will be a lower percentage and you may owe state income tax on any IRA or 401k distribution.
  • Remember that there is a difference between a tax credit and a tax deduction. A tax credit directly reduces the tax you owe. A tax deduction reduces the amount of income that is taxed. The CARES Act provisions have to do with deductions, not credits.
  • This summary refers to cash gifts only. The CARES Act does not change the rules for making non-cash gifts, such as stock, real estate, or other property.
  • Every situation is different. For example, you may not be able to take advantage of the CARES Act provisions because of the Alternative Minimum Tax (AMT) and other income tax regulations. Always check with your tax advisor before making a large gift.
  • Finally, the CARES Act applies only to 2020 charitable gifts. These provisions will likely not be extended.

To learn more, check with your tax adviser. This educational illustration is not professional tax or legal advice.

 

More Information

Missio Nexus

$200k Match Challenge to Fuel Revival

thermometer 200k match 2020 Fall 119535 give-now button-red

Help Develop This Pastor

help-develop-this-pastor-web

Yokohama - 68.jpg
chi013.jpg

GuideStar Rating

What they're saying...

Toshio Maehara
John Pearson
Dan Busby
Hugh O. McClellan
Rob Martin

Toshio Maehara

"As a Japanese businessman living in the U.S., I was reluctant to accept an invitation to join the Board of Directors of Asian Access. My schedule was so full, and I feel my English is not so great. However, when I met the staff and the missionaries, and when I first visited with other Board members, somehow I just couldn't refuse their invitation. My friends in Japan who are pastors and businessmen tell me how much they appreciate Asian Access missionaries and staff. They often tell me, 'they are people who give themselves unselfishly to the cause of Christ in Japan.' As a Japanese, I feel challenged by the men and women of Asian Access to do more for my own country. I am proud to be a supporter and a member of the Board of a mission like Asian Access."

Rev.Toshio MaeharaToshio Maehara
President, Maehara and Associates and 

Asian Access Board Member

John Pearson

"You can sense the energy and optimism of a ministry by visiting its website and meeting the key leaders. But…to know the heart and heartbeat of the ministry, get acquainted with their board members. As the board goes, so goes the ministry. So I’m delighted to say—based on up-close and personal observations and interactions—I know that Asian Access is led by God-honoring board members who care deeply about the Gospel and the Great Commission. And as stewards of the ministry, the board ensures that Asian Access continues to meet or exceed the rigorous accreditation, integrity, and transparency requirements of the Evangelical Council for Financial Accountability (ECFA)."

pearson john 75pxJohn Pearson,
Board Governance & Management Consultant,

Author, Mastering the Management Bucket 

Dan Busby

"Asian Access is a charter member of ECFA, having been a member for 39 years. ECFA is privileged to accredit this significant ministry as it develops leaders, growing and reproducing churches throughout Asia. We congratulate Asian Access on reaching the significant milestone of 50 years in ministry. May God continue to bless you as you advance God's kingdom."

Mr. Dan Busbybusby dan ecfa 75px
President, ECFA (Evangelical Council for Financial Accountability)

 

  

 

Hugh O. Maclellan

"I have full confidence in Asian Access as their track record for developing leaders is strong and impressive. Their successful church multiplication model has impacted thousands of lives worldwide."

hugh m 75pxHugh O. Maclellan, Jr.Chairman of the Board
The Maclellan Foundation, Inc.

Rob Martin

"If you want to change a country through strengthening the church, look at Asian Access. They do it right!"

rob martin 75pxRob Martin
Former Executive Director, First Fruit, Inc.

Partner Sites

a2 dot business NOtag white 850x120

eastern voices logo 250x40

go2japan logo grey

Our Partners

ECFA  SIM logo grey dropshadow

missio-nexus-logo

Asian Access

changing the few who change the many


PO Box 3307  Cerritos, California 90703 USA

email:  info @ asianaccess.org
phone:  (626) 914-8990
web:  asianaccess.org

give-now button-red

Search this Site

Login