Charitable Tax Deduction
Key Messaging for Your Employees
In response to the COVID crisis, Congress enacted The CARES Act, which created a new charitable deduction available to the 120 million individual taxpayers that do not itemize their deduction—including roughly 5 million United Way donors. This new benefit, also referred to as a universal deduction, allows for a charitable deduction of up to $300 per individual. For donors that already itemized their taxes, nothing changes. The Consolidated Appropriation Act of 2021 further extends this benefit permitting a charitable deduction of up to $600 on their 2021 federal income tax return for couples filing jointly.
While the deduction doesn't influence the decision of every donor, most economic estimates predict an overall increase in giving by about 5% resulting from a charitable deduction. For United Way, this could result in an increase in giving in the range of $70,000,000 (based on 2018 numbers).
But the time to act is now—the deduction expires on December 31, 2021. To support your campaign, United Way offers the following resources: