Notre Dame reminding donors of special year-end tax deduction

As 2020 comes rapidly to a conclusion, there is one additional gift of the Coronavirus Aid, Relief and Economic Security (CARES) Act that may have escaped the attention of people with charitable intent.

Alex Jackson, development director of Notre Dame Regional High School in Cape Girardeau since May 2017, noticed the tax-advantaged opportunity and is informing donors to the Catholic institution via snail mail and social media.

The CARES Act established a new, above-the-line deduction for charitable giving, meaning $300 may be written off an individual’s 2020 tax return without having to itemize.

Jackson said he is actively telling the high school’s 6,319 alumni about the tax break, which may well have gone unnoticed.

“It’s a really unique option that hasn’t been there before,” Jackson said.

“It’s pretty exciting to tell people about it,” he added.

Tax Cuts and Jobs Act

The 2018 Tax Cuts and Jobs Act, signed by President Donald Trump, overhauled the tax code by roughly doubling the standard deduction, resulting in fewer taxpayers taking itemized deductions.

The CARES Act, approved in the spring in reaction to the pandemic, has a provision allowing up to $300 in donations even if taxpayers take the standard deduction — $12,400 for single filers and $24,800 for married couples filing jointly.

Jackson is asking donors of the school, which originally opened in 1925, to use the tax break to make a gift to Notre Dame’s tuition assistance fund in support of Bulldogs’ families economically impacted by COVID-19.

Restriction

Regardless of what 501(c)(3) not-for-profit a person chooses to support, one standard must be met.

“The only caveat is the donation must be made directly to a charity and it must be in cash — not stocks or other assets,” said Mark Alaimo, a member of the American Institute of CPAs.

A credit card or a personal check may also be used for the donation, according to Alaimo.