The average donation at a fundraising gala could range from $ 125 to $ 150, said Afi Tengue, vice president of philanthropy and impact at Giving Compass, which helps donors research questions and make contributions. In this regard, she said, “$ 300 is a big deal.”
Here are some questions and answers about donating to charity.
Is the $ 300 universal deduction in the CARES Act permanent?
The deduction is only temporary for the 2020 tax year, said Cari Weston, director of tax practice and ethics at the American Institute of CPAs (Congress sometimes expands the temporary tax rules, and nonprofits want this to happen, so stay tuned.)
Can we deduct up to $ 600 if my spouse and I file a joint tax return?
The IRS has not yet made it clear whether the law allows a $ 300 deduction per taxpayer or per tax return. Although some law firms have written that it is “reasonable” to assume the deduction is $ 600 per couple, Ms. Weston said that most tax professionals would likely advise clients to be “conservative” and no more than $ 300 per return deduct.
How should I decide where to donate?
Choosing where to spend your money is a personal choice. However, there are tools available to help you decide.
Phil Buchanan, president of the Center for Effective Philanthropy and author of the book, Giving Done Right, suggested supporting community foundations that are well versed in local needs and likely to have funds to deal with the coronavirus. The Board of Trustees offers an online search tool to find one near you.
If you want to rebuild beyond the current crisis, he suggests helping local performing arts organizations that have been hard hit by the evaporation of ticket sales.