Giving Tuesday: Taxpayers can get up to $300 deduction for donating to charity

Monday, November 30, 2020
SAN FRANCISCO (KGO) -- You might be gloating over how much you're saving on Cyber Monday deals, but you might be overlooking a great deal.

It's a tax break for giving to charitable organizations. It could give a much need boost to those in need in our pandemic ravaged economy, which is part of Building A Better Bay Area.
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As you add up how much you've saved, the best deal of all could be a special tax break Congress included in its pandemic relief bill.

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"The CARES Act actually enacts a new provision that is going to allow individual taxpayers to deduct up to $300 on cash contributions made by check or credit card or debit card to a qualifying charity," explained Caroline Chen, asst. professor of accounting at San Jose State University.

After tax reform three years ago, nine out of 10 taxpayers stopped itemizing donations. But this is a one-time deduction everyone can take this year, even if you take the standard deduction.



It also has a potential multiplier effect as foundations or other major funders evaluate which organizations to support.

"They'll look and see how their fundraising, how nonprofits' fundraising is going, how much support they have through individual donations, and they'll make decisions about how to fund those organizations, using that information," said Kyra Kazantzis, CEO of the Silicon Valley Council of Nonprofits.

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COVID-19 made it impossible for nonprofits to raise money from golf tournaments or dinners. Every contribution, large or small, helps. Individual donations frequently make up 50 to 70% of a nonprofit's budget.

How can you make a difference? Tuesday is ABC7's Day of Giving. We'll be sharing the meaningful work of Bay Area nonprofits you may want to consider supporting.



"Let's put aside a little bit of money so that we can donate to the causes that we really care about and support the community around us," said Kyra Kazantzis.

Full list of Bay Area organizations to donate to this holiday season here.

See more stories and videos about Building a Better Bay Area here.
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Get the latest news, information and videos about the novel coronavirus pandemic here

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