Important Information Related to Charitable Giving in 2020

The Eye & Ear Foundation

While the COVID-19 pandemic has negatively affected many aspects of our lives, there is one change that could be beneficial both to you and the charitable organizations that you love to support. Thanks to the CARES Act (Coronavirus Aid, Relief and Economic Security Act), several changes to charitable giving rules are in effect for 2020 only. These changes allow individuals the chance to limit their future tax liability while helping charities that may need their financial support more than ever.

What Has Changed?

There are two significant changes to individual charitable giving thanks to the CARES Act.

  • For standard deduction filers, a $300 above-the-line charitable deduction was added. Typically, taxpayers who use the standard deduction cannot take a deduction for charitable giving. For 2020, taxpayers can take up to $300 of charitable deductions when using the standard deduction method.
  • Additionally, for individuals who use itemized deductions, the CARES Act eliminated the 60% adjusted gross income limitation. Typically, itemizers can only deduct charitable contributions up to 60% of their adjusted gross income. This limitation was removed in the CARES Act.  Under this change, ALL charitable contributions are deductible as long as the following stipulations are met.
  1. Donors must keep in mind that to take advantage of these new rules, all charitable contributions must be cash, and these contributions have to be given straight to charities.
  2. Donor-advised funds are not eligible, nor are funds donated to supporting organizations (organizations exempt under IRC 509(a)(3)).

As always, the Departments of Ophthalmology and Otolaryngology at the University of Pittsburgh School of Medicine has several crucial research initiatives that rely on your generous support. From head and neck cancer or hearing loss to age-related macular degeneration or glaucoma research, your contributions will help ensure that our departments continue their innovative medical research and provide world-class clinical care.

The Eye & Ear Foundation is a 501 (c)(3) organization and, therefore, your gifts to the Departments of Ophthalmology and Otolaryngology will meet the CARES Act guidelines.

*Source: Schneider Downs & Co., Inc.