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Level 2
posted Nov 11, 2020 5:41:40 PM

CARES Act 100% charitable contribution composition

The CARES Act allows deductions for charitable contribution up to 100% of AGI in 2020 (vs. 60% previously). The Act also states that to quality for 100% deduction, the contributions must be in cash. What I haven't seen clarified is how much of the contribution has to be in cash and to what types of organizations.

 

For example, will the following composition qualify for a 100% deduction?

30% appreciated stock to a donor advised fund

30% cash to private foundation

40% cash to a qualifying operating charity - for example GiveWell, GiveDirectly, etc.


Essentially, do the previous rules apply for the 60% and the "cash only/operating charity" rule apply only to the additional 40%?

 

0 2 496
2 Replies
Level 15
Nov 11, 2020 6:26:11 PM
Level 4
Feb 9, 2021 5:50:03 PM

The following was shared with me form TT and is helpful.

Note that the document is still 'draft' as the IRS is slower than ususal due to COVID.

 

Here is a link to the (draft) Charitable Contributions 2020 Draft Publication 526.

 

"DRAFT" Charitable Contributions as of January 13, 2021