In 2020, the CARES Act was passed to provide relief to individuals, businesses, and not-for-profit organizations – like Silver Cross Hospital, during the COVID-19 pandemic, and it created new charitable incentives to encourage individuals to make donations to public 501c3 organizations - including the Silver Cross Foundation, during this time.
These charitable incentives (listed below) have been enhanced and extended in 2021 under the Consolidations Appropriations Act.
For individual taxpayers who take the standard deduction
Individuals who do not itemize and instead take the standard deduction on their personal tax returns may also take an above-the-line universal charitable deduction in the amount of $300 provided they have made a cash gift to the Silver Cross Foundation totaling this amount during the 2021 tax year. In 2020, the above-the-line $300 charitable deduction was per tax return. In 2021, a husband and wife filing a joint tax return may each take the $300 deduction (a total of $600) on the tax return.
Donors who make an annual gift of $300 or more to the Silver Cross Foundation before Dec. 31, 2021 are also eligible to receive benefits at various levels through the new Annual Giving Society.
For individual taxpayers who itemize deductions
Donors who itemize can deduct charitable cash contributions up to 100% of the taxpayer’s adjusted gross income (AGI). Prior to the CARES Act, taxpayers were limited to deducting only 60% of their AGI. If a donor gives more than 100% of their adjusted gross income, the donor may carry forward excess deductions for up to five subsequent tax years; though, the enhanced deductibility is set to expire after 2021.
For Corporate Taxpayers
Corporations who make a cash gift to the Silver Cross Foundation in 2021 may deduct up to 25% of taxable income. This is up from the 10% limit, which generally applied to corporations prior to the CARES Act.
Businesses providing a charitable gift of $10,000 or more to the Silver Cross Foundation in 2021 will also be recognized Corporate Philanthropy Partner and receive additional benefits.
To make a donation to the Silver Cross Foundation before Dec. 31, 2021, click here, send a check to the Silver Cross Foundation, 1900 Silver Cross Blvd., New Lenox, IL 60451.
If you would like to support a specific program or service such as the Campaign for Heart Care or the new Amy, Matthew and Jay Vana Neonatal Intensive Care Unit opening in 2022 or to learn more about the new Giving Societies, please contact Tracy Simons at (815) 300-7113 or firstname.lastname@example.org.
To make the most of the CARES Act charitable tax deductions for the 2021 tax year, talk with your financial planner or accountant.