Hey everyone! We just heard about the new CARES Act the government recently passed. It has some VERY important information that can benefit you and your ministry. While we are not financial experts here, we wanted to make sure you knew this was available to nonprofits. Grab your accountant or finance team and take a look over this, as it could potentially help you stay afloat during these crazy times.
Here are some highlights:
1). We’ve all heard this one, soon most everyone will receive a check from the government. This amount is titrated based on your earnings $1200/tax payer and $500/child, but is capped at $3000/family. However, did you know that the CARES Act allows an individual to make a cash contribution up to $300 in 2020 and deduct the contribution “above the line” when computing adjusted gross income? The majority of people are currently filing straight without itemized deductions. This bill allows people to make a $300 contribution and receive a tax credit that is pulled off the top of their income.
Don’t you find it interesting that this new deduction is equal to 10% (eh hm… tithe amount)? It’s a great tid-bit of info to pass along to your congregation. We know the tendency is to protect & save in a time like this. However, letting your faithful tithers know that it will circle back around to them is a great thing!
2). For your big donors, they just increased the amount of their donations that can be written off. They can now write off up to 100% of their adjusted gross income, vs. the standard 60%. THAT’S HUGE! Again, letting people know this is out there is the first step in getting them back in that giving mode!
3). Paycheck Protection Loan: Small businesses and churches can apply for a loan at their local bank. This loan can be up to 2.5 times the amount of your average monthly payroll. The purpose of this loan is to help keep people out of the unemployment lines, so there are rules as to what the funds can be used for. As long as you follow the rules, you can mostly likely receive loan forgiveness for the entirety of the loan! (See resource below for more details). Again, we are not experts here, we’re simply a messenger. Check out the resources for yourself to get more information and a better understanding. If you have time – please watch their webinar to help gain a better understanding of the programs & resources available! We are all in this together and will come out better on the other side.
Our main goal is to serve the church in any way we can. We would LOVE to hear back from you. Let us know if these tips helped your ministry!