The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), is a $2.2 trillion economic stimulus bill passed by Congress and signed into law by the President on March 27, 2020 in response to the economic fallout of the COVID-19 Pandemic. The new law included three primary areas that related directly to philanthropic giving, including donations made to the Delta Sigma Pi Leadership Foundation.

A new charitable deduction included in the CARES Act allows for up to $300 in annual charitable contributions to qualified charities, such as the Foundation. This is available only to people who take the standard deduction. It is an "above the line" adjustment to income that will reduce a donor's adjusted gross income, and thereby reduce taxable income on their 2020 tax returns when they file in 2021. 

The CARES Act temporarily suspended the requirement for those 70 1/2 or older who have a required minimum distributions (RMD) from a defined-contribution retirement plan, including a 401(k) or 403(b) plan, or an IRA, for the 2020 tax year. This includes anyone who turned age 70 1/2 in 2019. 

Finally, for taxpayers who itemize their deductions, the CARES Act allows for cash contributions to qualified charities, such as the Foundation, to be deducted up to 100 percent (previously at 60 percent) of their adjusted gross income for the 2020 calendar year. 

This information is not intended to provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations.