When it comes to taxes, giving is truly receiving: charitable contributions let you give and receive at the same time. You can lower your tax liability while helping causes and organizations you care about make a positive impact in society. Several provisions by the April 2020 CARES Act (Coronavirus Aid, Relief, and Economic Security) have raised the cap on the amount of tax-deductible donations you can make this year. Read on to learn how you can take advantage of these changes while advancing the growth of Black businesses across the nation.
You Can Deduct 100% of Charitable Contributions
It feels good to give. You worked hard all year, and now you can use the fruit of your labors to help the underserved. High-income individuals can benefit from a change in the tax code which removes the limit on the total amount of deductions they can take for donations. Before the change, the highest amount an individual could deduct was 60% of their AGI (adjusted gross income) for the year. Now, individuals can deduct 100% of their AGI.
There are a few rules to keep in mind. The tax deductions can only be used for individual giving to eligible organizations. (To confirm an organization is eligible, you can always use the IRS’s Tax Exempt Organization Search database. You can find us listed under Bootstrap Capital.) The deductions do not apply to contributions to donor advised funds (a type of investment account) or private foundations (foundations funded by a single individual, family, or corporation, such as the Bill and Melinda Gates foundation). Additionally, these tax benefits can only be used for cash gifts, not gifts of property or stocks, and deductions must be itemized.
Want your charitable contributions to further gender equality, inclusive economic growth, and economic equality across the country? Make a donation to Bootstrap Capital today.
Corporations Have Higher Limits on Charitable Contributions
You did it: you survived the pandemic and the months of economic turmoil that followed. Now you want to do your part to uplift others. What’s more double-bottom line than helping those who weren’t so fortunate?
Like individuals, corporations can take advantage of larger tax breaks for donations. Prior to the CARES act, the maximum amount allowed for annual cash gifts was 10% of corporate taxable income. The new rules allow cash gifts of up to 25% of corporate taxable income.
As with charitable contributions from individuals, donations from corporations must go to eligible organizations.
You can Donate $300 Without Itemized Deductions
Another new tax change for 2020 allows individuals to give up to $300 in charitable contributions while still taking a standard deduction—they do not have to itemize contributions. Since 87 percent of Americans choose to take a standard deduction rather than using itemized deductions, this change will streamline the process of charitable giving for millions of people.
Donations must be made before the end of the calendar year (by December 31, 2020). Click here to Make a donation to Bootstrap Capital now.
Maximize Your Tax Deductions While Fueling Black Business
Black businesses are cornerstones of the community. Black business owners often intentionally locate themselves in Black and Brown spaces, providing a doorway to jobs, education, and economic advancement that residents in underserved areas have historically lacked. They also serve as community leaders, often mentoring others and advocating for social change.
However, women-owned and Black-led businesses face barriers to sources of funding for their business to grow or hedge against crises. Women receive just 4% of loans (about $1 out of every $23) and only 2% of venture capital.
Our mission is to change the status quo by increasing access to capital. EnrichHER’s platform makes it easy for you to donate to Black-owned and women-led businesses to empower them to weather difficult times and scale their operations. We are partnering with Bootstrap Capital, a Georgia based 501 (c) (3), to connect underinvested founders to funding.
About Bootstrap Capital
Bootstrap Capital, a Georgia based 501 (c) (3) is laser-focused on helping early stage companies achieve what others believe is impossible. We connect entrepreneurs with the resources, connections, and capital they need to be successful. Through our hybrid approach, we partner with passionate founders who are looking to transform large markets. We are entrepreneurs investing in entrepreneurs.
EnrichHER is a financial technology platform that matches revenue-generating companies led by women and founders of color to individual and institutional sources of funding. Since 2017, EnrichHER has deployed upwards of $4 million through its platform and matched business-owners to $13 million in working capital through its Accelerator. By providing capital, coaching, and connections, we are fueling the fastest-growing demographic of business owners. Our network has engaged with over 23,000 advocates through its digital community and in-person activations.