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Nonprofit Tax

Corporate Charitable Deductions for Disaster Relief
Nonprofit Tax

Corporate Charitable Deductions for Disaster Relief

Normally, corporations can only deduct charitable contributions up to an amount that equals 10 percent or less of their taxable income in the given tax year. Under the CARES Act, this limitation was bumped to 25 percent of taxable income.

More recently, the December 2020 Taxpayer Certainty and Disaster Tax Relief Act (TCDTRA) temporarily upped the limit for corporate charitable contribution deductions to 100% for qualified disaster relief contributions.

The IRS has released additional guidance for corporations considering using the deduction. Here’s what you need to know.

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Nonprofit Tax

New Limits on Charitable Deductions in 2021

The new tax laws continue 2020 CARES Act changes that increase the above-the-line individual tax deduction to $300. In addition, the new rules double the deduction for married couples filing jointly to $600; the 2020 CARES Act did not have a provision that permitted couples to claim an additional amount over individual filers. Donations must be made in cash (rather than stocks or other assets like cars and clothing; credit cards and checks are OK) and go directly to a charity (donor-advised funds and private non-operating foundations do not count).

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Nonprofit Tax

2021 IRS Compliance Priorities for Tax Exempt Organizations

At the beginning of each fiscal year, the IRS releases guidance on its compliance priorities for tax-exempt and government entities (TE/GE) and explains how those priorities align with the agency’s strategic goals.  This year, the IRS has streamlined its usual annual long letter approach into a short two-page letter and promised to provide quarterly updates on its compliance priorities; an effort to more accurately reflect the fluid nature of IRS operations and shifting compliance priorities throughout the year.

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What Your Nonprofit Needs to Know About Lobbying

Can your nonprofit lobby without jeopardizing its tax-exempt status? In short, yes. The IRS permits lobbying within specified limits. And some activities may not even be considered lobbying at all. Here’s what you need to know.

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Arizona 2020 Tax Credits
Nonprofit Tax

It’s Not Too Late to Claim 2020 State Tax Credits

State charitable tax credits are a win for everyone; qualified charities receive the support they need at no extra expense to the taxpayer beyond what they would already owe to the state in taxes. Note that while credits are non-refundable (i.e. if you don’t end up owing enough in taxes to fully benefit from the credits, you will not get a refund from the state), unused credits can be carried forward for 5 years.

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