The COVID-19 relief legislation signed into law in December 2020 includes some provisions that could be a boost to donors and the nonprofits they support. For example, it extends the temporary “universal charitable deduction” for taxpayers who don’t itemize their deductions through 2021.
The deduction was limited to $300 for cash contributions to qualified charities for both individuals and married couples filing jointly in 2020. But couples can deduct up to $600 for 2021. Many taxpayers are unaware of this opportunity, so nonprofits should highlight it in appeals throughout the year. Learn more here →
The relief package also includes another round of funding for first-time or so-called “second-draw” forgivable loans under the Paycheck Protection Program — including for qualifying 501(c)(6) organizations, which weren’t eligible for the first round. In addition, borrowers can use the funds for a wider array of expenses than previously allowed. These include certain operating expenses, property damage costs and worker protection costs. The current deadline to apply for Paycheck Protection Program funding is May 31, 2021. Learn more here →