At the end of 2020, Congress passed a second stimulus package in response to the COVID-19 pandemic. This new stimulus package extends many of the charitable giving provisions outlined in the original Coronavirus Aid, Relief, and Economic Security (CARES) Act for the 2021 tax year. 

Over the past year, many donors have stepped forward to generously support College of Music students, programs, and performances. The College is grateful! For those who wish to give again or perhaps for the first time, the changes and extensions to CARES Act provisions may have a positive impact.

Here is what the new stimulus package means for you:

An expansion of the universal charitable deduction for cash gifts
The universal charitable deduction has not only been extended but given a well-deserved upgrade. The new deduction is $300 for single filers and $600 for married couples filing jointly. This is available to taxpayers who take the standard deduction. This tax incentive is available for cash gifts to qualified charities (but not to supporting organizations or donor advised funds).

An extension of the cap on deductions for cash contributions
Contributions to public charities are generally limited to a percentage of a taxpayer’s adjusted gross income. The CARES Act lifted the cap on annual contributions for those who itemize, increasing it from 60% to 100% of AGI for 2020 and now for 2021. Any excess contributions available can be carried over to the next five years. For corporations, the law raised the annual limit from 10% to 25% of taxable income.

The College of Music is here to help with your charitable goals. The continued kindness and support shown by donors has been a bright light during a difficult time. Please contact the MSU College of Music Advancement Office to discuss the many ways in which your gift can help further our mission. 

Rebecca Surian, Senior Director
surian@msu.edu; (517) 353-9872

Ann-Marie Lindley, Associate Director
alindley@msu.edu; (517) 432-4889