By Reader Staff
The Coronavirus Aid, Relief, and Economic Security Act made changes to tax rules in 2020 to allow for increased charitable giving amid the pandemic and corresponding economic hardships.
“Whether taxpayers are supporting natural disaster recovery, COVID-19 pandemic aid or another cause that’s personally meaningful to them, their charitable donations may be tax deductible,” the Internal Revenue Service stated in a news release. “These deductions basically reduce the amount of their taxable income.”
Previously, taxpayers could only deduct charitable contributions if they itemized their deductions. For 2020, thanks to changes under the CARES Act, taxpayers who don’t itemize deductions can take an above-the-line deduction of up to $300 for cash contributions to qualifying organizations.
The IRS defines “qualifying organizations” as “those that are religious, charitable, educational, scientific or literary in purpose.” These definitions changed under the CARES Act. Find out if a charitable organization qualifies at irs.gov/charities-non-profits/tax-exempt-organization-search.
Locally in North Idaho, there’s no shortage of good nonprofit causes to support with this charitable giving deduction. The holiday season also ushers in specific fundraising goals.
For instance, Creations on the Cedar Street Bridge — also known as the nonprofit organization Arts Alliance, Inc. — is working to raise $2,000 in December to buy new art supplies and activities. Learn more and donate at creationsforsandpoint.org.
The Sandpoint Youth Center (also known as the Sandpoint Teen Center) is also raising money this month to pay for its Healthy Teens After School program, which “provides meals, movement and mentoring to Bonner County teens” every day from 1 p.m. to 3:30 p.m. Learn more and donate at sandpointteencenter.com.
To view an extensive list of local nonprofits and community service groups, head to sandpointonline.com, click on “Directories” and look under the “Community Groups & Social Services” section.
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