Great news! There is a new financial incentive for Americans to give generously to qualifying charities, including Compass Affordable Housing. The new universal tax break for charitable donations was included in the final $2 trillion COVID-19 stimulus package and will go into effect starting with the 2020 tax year. The measure grants taxpayers an above-the-line deduction for up to $300 in charitable donations given in 2020. So, for folks who take the standard deduction, if you give $300 to charity, you should get the $300 tax break in addition to the standard deduction. Now is the perfect time to take advantage of this “above-the-line” opportunity and give to Compass Affordable Housing during the unprecedented COVID-19 health and economic crisis.
Here is the break down for those taking standard deductions, itemized deductions and corporate giving:
- Standard Deduction:
For people who take the standard deduction, the CARES ACT allows you to take a tax deduction for contributions up to $300 per year starting in 2020 – this deduction is “above-the-line.” The 2020 Standard deduction is $12,400 for individuals and $24,800 for married couples filing jointly, therefore any donation to qualifying charities of up to $300 will be added to the standard rate of deduction. This deduction is here for 2020 and beyond.
- Itemized Deduction:
For people who file for itemized deductions, the CARES ACT allows you to take a tax deduction of up to 100% of your Adjusted Gross Income (AGI) for contributions to qualifying charities starting in 2020. The new law temporarily lifts the limits on charitable giving from 60% of a taxpayer’s AGI to 100% for 2020.
- Corporate Donations:
For corporate donors, the CARES ACT allows an entity to take a tax deduction of up to 25% of their Adjusted Tax Income for contributions to qualifying charities starting in 2020. The new law temporarily lifts the limits from 10% of adjusted taxable income to 25% for 2020.
These are confusing, anxiety-filled, and uncertain times for all of us. But this does not mean that the important work of Compass Affordable Housing has stopped. Our services just look a little different during this time of uneasiness. Here is what we are doing to serve our tenants and Community Housing participants during this pandemic:
- We are not evicting tenants who lose their jobs from CAH-owned communities! Our mission is to help people build housing stability and we stand by that.
- Where possible, we have implemented no-contact food delivery to low-income households.
- While maintaining our social distance, we are hosting daily phone contact with tenants and households we serve in all of our programs to provide resources and encouragement.
- We are advocating for Community Housing participants living in other complexes with landlords and employers.
- We are proactively reaching out to CAH tenants, Community Housing participants and former clients with crisis resources and information updates.
- We are collaborating with other community organizations to assist as many people as possible.
- In order to observe social distancing, we had to suspend Your Healthy Home Market* temporarily. During this time, we are delivering the food typically distributed to tenants on market day to a local soup kitchen and a women’s shelter that feed the many they serve each day.
*What is the Your Healthy Home Market?
The Your Healthy Home Market (YHHM) is an exciting monthly event that gives tenants access to healthy produce, grains, protein and herbs. As part of each YHHM, we offer nutrition classes that teach tenants how to plan a healthier diet, shop and stretch their food budgets, store and cook fresh produce, enjoy easy, healthy exercise, etc. At the end of each monthly nutrition class, our tenants “shop” for free, healthy food at the market.