Charitable Giving and the Coronavirus Aid, Relief and Economic Security (CARES) Act
In response to the health crisis facing our nation, Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act in March 2020. In addition to providing individual stimulus checks, the CARES Act includes provisions that impact higher education and charitable giving. Wayne State will receive some federal funding through the CARES Act, but it is not enough to meet the increasing financial need of our students.
The university's Student Emergency Fund is a vital resource for students struggling with unexpected expenses. It provides immediate funding of urgent costs such as utility bills, cell phone bills, laptops, Wi-Fi hot spots and temporary housing.
And while immediate expenses need immediate support, Wayne State continues to rely on generous donors to help fund long-term priorities, including student success initiatives, research projects and community partnerships.
Changes to charitable giving in 2020
- Temporary universal charitable deduction: Taxpayers who do not itemize their returns can claim a charitable giving deduction of up to $300 for an individual or $600 for a household filing jointly. This deduction only applies to cash contributions made in 2020.
- Elimination of charitable contribution limitation: For taxpayers who itemize, the cap on deductions taken for charitable contributions has increased from 60 percent to 100 percent of adjusted gross income (AGI) in 2020. Any excess can be carried forward for five years. The change only applies to cash contributions, and gifts to donor advised funds (DAFs) do not qualify. Please consult a tax professional for information specific to your individual situation.
- Retirement account changes: Visit our Planned Giving website for information on how the CARES Act impacts gifts made from retirement accounts.