Tax Benefits of the CARES Act

The new CARES (Coronavirus Aid, Relief, and Economic Security) Act is designed to help you, businesses and nonprofits facing economic hardship during the coronavirus pandemic.

The Law, Explained by a Charitable Planning Attorney

Here are a few key provisions of the CARES Act that may affect you and your charitable goals:

Required Minimum Distributions Suspended

The new law temporarily suspends the requirements for required minimum distributions (RMD) for the 2020 tax year. This probably comes as a relief to many of you who would have had to withdraw from your retirement accounts.

New Tax Incentives

The CARES Act expands charitable giving incentives and allows taxpayers who take the standard deduction to make up to $300 of charitable contributions to qualified charities this year. You might think that this is a small amount and would not make a difference. But what if all of our donors gave “just” $300? Such support would have a huge impact on those we serve.

For those who do itemize their deductions, the new law allows for cash contributions to qualified charities such as American Academy of Ophthalmology Foundation to be deducted up to 100% of your adjusted gross income for the 2020 calendar year.

Your Charitable Goals

We are deeply grateful for your continued kindness and support during this difficult time. Please contact Todd Lyckberg at tlyckberg@aao.org or 415.447.0386 to discuss how your gift can help further our mission.