As it relates to fundraising, the CARES Act incentivizes charitable giving from individuals and corporations by increasing tax deductions for charitable donations. It also offers loans and grants to eligible nonprofit organizations impacted by the coronavirus.

On Friday, March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The $2 trillion economic stimulus bill aims to provide immediate relief for individuals, nonprofits, businesses, and state and local governments.

What Does This Mean for Nonprofit Organizations?

As it relates to fundraising, the CARES Act incentivizes charitable giving from individuals and corporations by increasing tax deductions for charitable donations. It also offers loans and grants to eligible nonprofit organizations impacted by the coronavirus. Below, please find a broad overview of the most impactful ways that the CARES Act affects donors and nonprofit organizations for tax year 2020.

Individual Donors:

Corporate Donors:

Small Nonprofits (501(c)(3) or Veteran’s organizations 501(c)(19) with 500 employees or less):

Paycheck Protection Loan Program

Economic Injury Disaster Loan (EIDL) Program

Large Nonprofits (Defined as Employing 500-10,000 Individuals):

Other Provisions to Note

Federal Grants:

Real Estate/Capital Gains Tax Change:

Additional Nonprofit Relief:

This piece has been prepared for informational purposes only and is not to be construed as tax advice. Individuals should consult their accountant or tax advisor with regard to such matters.

Sources Referenced:

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