How the CARES Act May Affect Your Charitable Giving in 2021

The federal government’s CARES Act acknowledges the importance of non-profits and encourages support of public servants like KET. As you consider your philanthropic priorities, keep in mind some ways the CARES Act may affect your charitable giving in 2021.

• Taxpayers who do not itemize can take advantage of a one-time universal tax deduction of up to $300 for gifts made to qualifying non-profit organizations, like KET.
• Taxpayers who do itemize can take a charitable gift deduction of 100 percent of their adjusted gross income (AGI), making your gift fully tax deductible! New in 2021 is an additional “above-the-line” deduction for those married filing jointly. Joint filers (who aren’t itemizing) will be allowed to take an above-the-line deduction of up to $600 in cash contributions to charity this year.
• Corporations can now deduct 25 percent of their taxable income for gifts made to qualifying charitable organizations, like KET.
• These tax incentives do not cover contributions made to donor-advised funds or private foundations. If this is how you typically give, consider making your contribution directly to KET to take advantage of tax incentives under the CARES Act.
• If you utilize your IRA and Qualified Charitable Distributions (QCD) to accomplish your philanthropic goals, consider making your contribution directly to KET to take advantage of tax incentives under the CARES Act, which allows an individual can elect to deduct 100 percent of their AGI for cash charitable contributions.

However you decide to give and whatever amount you are able to give, thank you for doing your part to keep KET strong now…and in brighter days ahead. For more information on how you can support KET, contact Kacie Miller, Director of Philanthropy, at kmiller@ket.org or (859) 258-7206.