HELPING DURING COVID-19 - TAX DEduction
Sustaining the nonprofit sector:
Like many individuals and industries, the nonprofit sector is facing an unprecedented set of challenges in the face of global pandemic COVID-19. As a result of the crisis, many safety net nonprofits are straining to respond to an increased demand for their critical services—addressing needs like homelessness, food insecurity, elder care and medical needs. Nonprofits are also critical employers and economic drivers in our communities. With 12.3 million paid workers, the nonprofit sector is the third largest industry workforce in the American economy.
Even those organizations like The Wild Animal Sanctuary that are not directly responding to COVID-19 are facing growing difficulties:
Declining revenue streams
As the crisis evolves, many organizations like ours have had to curtail or limit their regular fundraising efforts even as revenues are falling. As communities enact measures to control and mitigate the spread of COVID-19, The Wild Animal Sanctuary and countless organizations have canceled or postponed the fundraising events that bring in critical funds to sustain their work throughout the year, as well as revenue-generating programs such as camps, classes, clinics, performances and more. In addition, the Sanctuary's pool of donors has shrunk as unemployment levels rise and economic insecurity takes hold.
These cuts and changes leave nonprofits like ours at risk of sharp revenue declines that could have a severe impact on their operations—and many don’t have reserve funds on which to depend. Fifty-nine percent of respondents to an Idealist survey of nonprofit sector employees said that their organizations had already cut programs or services in response to COVID-19. Similar to restaurants, retail and other small businesses, many nonprofits like the Sanctuary may not survive if the pandemic continues to impact operations for an extended period.
Volunteer shortages and a diminished workforce
Nonprofits like us that rely on volunteer engagement are facing a shortage of workers as people are asked by state and local governments to stay home. This deficiency impedes our ability to maintain regular operations. While many nonprofits are trying to convert, where possible, to a remote volunteer and employee workforce, the Sanctuary requires on-site volunteerism and direct physical work on a daily basis.
How to help
Donors who wish to support the ongoing health of The Wild Animal Sanctuary can help by continuing to contribute — and even increasing their support — to the Sanctuary and any other of their favorite nonprofits. Consider giving unrestricted support, which allows organizations like us to use the funds on our most mission-critical priorities. Donors can also consider altering their giving timeline — moving forward planned end-of-year gifts so they can be put to use immediately. The most important point is not to wait! Nearly every charity is feeling the negative effects of COVID-19 — making sustained donor support more important than ever!
You may be able to deduct 100% of your Donation to The Wild Animal Sanctuary!
Normally, under the Internal Revenue Code (“the Code”), deductions for charitable contributions are subject to certain “percentage limitations” that limit the deductions that can be taken to a stated percentage of adjusted gross income (“AGI”) in the year the deduction is taken. (Contributions in excess of these percentage limitations may be carried forward up to five subsequent years.)
Because The Wild Animal Sanctuary is a public charity, the percentage limitations that apply are generally the most favorable charitable deductions available under IRS rules. Deductions for contributions of long-term capital gain property (such as appreciated securities held for more than one year) may be taken up to 30% of AGI. Deductions for all other contributions (including contributions of short-term capital gain property and cash equivalents) may be taken up to 60% of AGI.
Your own ability to take itemized deductions may be subject to certain other limitations. Please contact your tax advisor to determine your tax deductibility limits and learn more about the special tax changes that allow certain donations to be deducted 100%.
The Wild Animal Sanctuary has been recognized by the Internal Revenue Service (IRS) as a tax-exempt charitable organization that is a public charity, as described in sections 501(c)(3), 509(a)(1) and 170(b)(1)(A)(vi) of the Internal Revenue Code (“the Code”) of 1986, as amended. The Sanctuary is governed by an independent Board of Directors, and all activities of The Wild Animal Sanctuary are subject to the Director’ discretion, directly or through staff or other agents, pursuant to the organization's Articles and By Laws and established guidelines. The Guidelines above provide information that is general and educational in nature. It is not intended to be and should not be construed as legal or tax advice. The Wild Animal Sanctuary does not provide legal or tax advice. In compliance with IRS requirements, any information contained herein is not intended or written to be used, and cannot be used, for the purpose of avoiding tax penalties under the Internal Revenue Code. Content provided relates to taxation at the federal level only. Availability of certain federal income tax deductions may depend on whether you itemize deductions. Rules and regulations regarding deductions for charitable giving vary at the state level, and laws of a specific state or laws relevant to a particular situation may affect the applicability, accuracy, or completeness of the information provided. Charitable contributions of capital gain property held for more than one year are usually deductible at fair market value. Deductions for capital gain property held for one year or less are usually limited to cost basis or fair market value, whichever is less. Consult an attorney or tax advisor regarding your specific situation