As businesses and industries across the globe respond to the financial impacts of the COVID-19 pandemic, nonprofits are not immune. As many nonprofit organizations rely on government, corporate, foundational, and individual support, this unprecedented time holds great risk. Making donations to organizations like SOS Children’s Villages Illinois means that nonprofits can provide the crucial support necessary to keep vulnerable people and causes safe, such as children in foster care. However, nonprofit charities are not the only ones benefitting from donations during this time. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides specific, enhanced financial benefits to donors themselves, making charitable donations during this time more impactful for everyone.
Why Nonprofits Need Extra Support During COVID-19
As national, state, and local social distancing ordinances continue to take effect to minimize the spread and severity of COVID-19 in the United States, economic stability has been rocked. Stores, restaurants, tourism, entertainment, athletics, and travel have faced heavy disruptions and stalls, contributing to the current economic crisis. For nonprofits with partners and supporters within such industries, typical contributions may not be possible. As unemployment rates rise, individuals who normally contribute may need to be more frugal.
Additionally, social distancing guidelines minimizing or eliminating public gatherings and events have meant to that companies, such as nonprofits, can not safely gather for fundraisers, galas, walkathons, and more. Without these crucial fundraising events, nonprofits face the risk of programming cuts, impacting the most vulnerable people and causes among us.
It is these vulnerable causes and populations that need our support the most, especially during these unprecedented times. At SOS Children’s Villages Illinois, the children in our care deserve the support of loving Foster Parents, complete with the tools necessary for success. The at-risk families we serve in the Back of the Yards neighborhood through Casa Tepeyac deserve the resources required to navigate this tumultuous time among other barriers. We recognize that while not everyone is able to give right now, we depend on the support of our generous community of donors, partners, and friends in order to ensure we can protect families in need.
Fortunately, for those who are contributing as donors or thinking of getting started with making a donation, now is a better time than ever to make a meaningful donation to a nonprofit – for us and you.
CARES Act Provides Additional Financial Donor Benefits
Aside from establishing a brand or reputation with positive contributions to social responsibility and community support, giving to a nonprofit during COVID-19 provides a unique chance for individuals and organizations to receive their own financial incentives.
In order to meet the urgent needs of nonprofit organizations and institutions during the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides significant funding for businesses, hospitals, schools, social support programs, and more. Among these benefits are additional donor financial incentives to encourage giving.
According to Forefront, the charitable giving incentive within the CARES Act offers a two-prong approach to donor benefits, helping donors receive the most substantial tax cut available as a result of their generous giving to an organization in need.
The two major provisions for charitable contributions in the CARES Act are:
- An above-the-line deduction (universal or non-itemizer deduction that applies to all taxpayers) for total charitable contributions of up to $300. The incentive applies to contributions made in 2020 and would be claimed on tax forms next year. (Section 2204).
- A lift on the existing cap on annual contributions for those who itemize when filing, raising it from 60% of adjusted gross income to 100%. For corporations specifically, the bill raises the annual limit from 10% to 25%. Food donations from corporations would be available to 25%, up from the current 15% cap. (Section 2205).
For donors, this change can mean major savings when it comes time to file for 2020 taxes, whether by increasing an individual’s refund amount, reducing a pay-back amount, or helping a company to receive a tax reduction boost.
Making An Informed Donation During This Time
In order to reap the tax benefits of making a donation during this time, ensure that your gift is going towards a legitimate nonprofit organization or institution working to support a cause aligned with your values. Prior to making a gift, it is important to do a bit of research to ensure the organization of your choice is ethically using their funds to better an important cause. As charity scams often rise during financial crises, making a researched and prudent donation is of great importance.
For example, donations made during this time to SOS Children’s VIllages Illinois enable us to continue doing the groundbreaking work of building the foster of foster care. By keeping siblings together under the care of a full-time, professional Foster Parent in our Village communities, children in foster care have a safe and stable place to grow. During this pandemic, our families need your support as we diligently work to keep our VIllages healthy and stocked with food, diapers, medications, and more. Additionally, our Foster Parents are tasked with keeping our children educated through their virtual school work assignments, as well as supporting the emotional needs of each child through the help of our case managers and clinical therapists. These things cannot happen without your help.
How can you be sure of our validity? Accredited by the Council on Accreditation, SOS Illinois is one of only 25% of charities rated by Charity Navigator as a Four-Star charity. As a result, you can rest assured that your donation made during this time is going towards an organization making a real difference now and always. You can get started by making an online gift today. We will reach out to you with the appropriate tax documents you need in order for you to receive the benefits laid out in the CARES Act.
Gratitude for Donors and the CARES Act
We are always grateful for our donors, especially those who have been providing extra support during this urgent time. It is because of you that we are able to walk through this difficult era with purpose and drive, working harder than ever to keep our communities safe. We commend the CARES Act for recognizing the importance of this incentive for donors and are available to answer any questions that we are able about how your gift to SOS Illinois can, in return, help you. Please contact us at firstname.lastname@example.org with questions.