How does the CARES ACT Impact Charitable Giving?4 min read

by Lisa Becker
How does the CARES ACT Impact Charitable Giving?<span class="wtr-time-wrap after-title"><span class="wtr-time-number">4</span> min read</span>
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Come to me, all who labor and are heavily burdened, and I will give rest. Matthew 11:28

Now more than ever, we can turn to God to provide us rest. Matthew 11:28 teaches us that we can turn to God to find our comfort. Right now, we need to turn to God for comfort and relief from this pandemic and this unraveling economic crisis. In God there is hope.

With the ongoing pandemic, the US Congress passed, and President Trump signed into law, the Coronavirus Aid, Relief and Economic Security (CARES) Act of 2020. This is a $2 trillion economic stimulus package to provide relief for Americans but also to provide relief for nonprofits like Dayspring Christian Academy.

How does the CARES act support charitable giving and Dayspring Christian Academy?

Here are several options for those wanting to support Dayspring in 2020:

  • New Deduction Available for 2020: Up to $300 per taxpayer ($600 for a married couple) in annual charitable contributions. This is available only to people who take the standard deduction (for taxpayers who do not itemize their deductions). It is an “above the line” adjustment to income that will reduce a donor’s adjusted gross income (AGI), and thereby reduce taxable income.
  • New Charitable Deduction Limits: As part of the bill, individuals and corporations that itemize can deduct much greater amounts of their contributions. Individuals can elect to deduct donations up to 100% of their 2020 AGI (up from 60% previously). Corporations may deduct up to 25% of taxable income, up from the previous limit of 10%. The new deduction is for gifts that go to a nonprofit such as Dayspring Christian Academy.
  • Required Minimum Distributions Waived in 2020: For most donors the required minimum distributions (RMD) that would have had to start in 2020 do not have to start until 2021, including distributions from defined benefit pension plans and 457 plans. This change will dampen somewhat the incentive for a donor to make a qualified charitable distribution (QCD) from their IRA in 2020. Even so, making a QCD this year will still allow itemizers and non-itemizers alike to direct up to $100,000 from their IRA to charities in a tax efficient manner.

Dayspring Christian Academy provides a Principle Approach education that teaches students to think and reason from biblical truths and to make application to every area of life. Every class at Dayspring begins with God’s Word so our students have a starting point of truth.

Now more than ever, we need to teach students from the Word of God. We strive to teach students to think for themselves and to be able to go to the Word of God to solve issues and problems that will arise now and in the future.

While the country is closed, Dayspring continues to operate online for our families who want a Christian education. Now more than ever, Dayspring is showcasing how important a quality education is to our students, families, and to our community. Dayspring is the difference and educating our students to think and reason is the difference in the future of our country.

During this pandemic, Dayspring is working hard to provide a quality education to each of our students for the remainder of this school year, but the school is also preparing for the 2020-2021 school year. Many of our Dayspring families are experiencing their first crisis. Our Dayspring families are seeing job losses and their way of life impacted by this pandemic and the continuing shutdown of our great Country. This economic uncertainty trickles down to our local Christian schools. More of our families will need tuition assistance to help pay for a Christian education after this shut down. We are thankful for the CARES act and that our government has provided incentives to assist those wanting to support nonprofits.

We, at Dayspring Christian Academy, educate our students in such a way that when they raise their own children or when they vote in a local or a national election, we have citizens who understand God’s Word and who can restore our nation to its Christian heritage. We must change the tides now, so we can see our country prosper once more. Benjamin Franklin was asked once, “what have we got: a republic or a monarchy?” and his response is so important in this current situation. “A republic, if you can keep it.” Dayspring is working hard to keep what our Founding Fathers worked so hard to establish.

The CARES Act allows donors to support Dayspring Christian Academy in 2020. We ask you to consider these CARES Act options and to help Dayspring Christian Academy to continue its important mission.

If you would like to learn more about how you can support Dayspring Christian Academy you may contact Joanne Martin at

*The information provided in this blog is not intended as legal or tax advice. Dayspring Christian Academy recommends talking to a financial advisor and/or a tax accountant.