CARES Act tax deduction can help American Legion programs and services

Donors who contribute to four American Legion funds that help disabled veterans, children and victims of natural disasters may be eligible for a separate federal income tax deduction provided in the coronavirus relief package.

A qualified taxpayer who does not itemize may be eligible to donate up to $300 to certain nonprofit organizations and have that amount deducted from adjusted taxable income. Four funds of The American Legion that qualify for the deduction as 501(c)3 nonprofits are the American Legion Veterans & Children Foundation, American Legion Charities, American Legion National Emergency Fund and The American Legion Child Welfare Foundation.

The Temporary Universal Charitable Deduction provision of the CARES (Coronavirus Aid, Relief and Economic Security) Act applies only for cash gifts made in the 2020 calendar year. Taxpayers who itemize their returns would report contributions to American Legion nonprofits as they would in a normal year.

The CARES Act also lifts the limit for 2020 donors who previously could not deduct over 60 percent of their adjusted gross income to qualified nonprofits. For 2020, there is no limit, making all such contributions deductible in just this tax year.

The American Legion Veterans & Children Foundation – formerly doing business as the American Legion Endowment Fund – supplies urgent cash grants to military and veteran families with minor children at home who have been hit with unavoidable financial hardships. One-time American Legion Temporary Financial Assistance grants help them cover the cost of shelter, utilities, food and clothing. In 2019, The American Legion awarded more than $1.1 million in TFA grants to such families. The foundation also supports the organization’s corps of more than 3,000 service officers who provide free claims assistance for disabled veterans.

American Legion Charities, Inc., allocates contributions where they are most needed to fund services that help veterans, programs that mentor young people and efforts to support military personnel.

The National Emergency Fund has produced millions of dollars in relief funds for American Legion Family members and local posts that have withstood devastating natural disasters.

To make a tax-deductible donation to these and other American Legion programs, visit www.legion.org/donate or call (800) 433-3318.