Charities See Surge of Giving Ahead of Change in Tax Law
Source: WSJ
Charities and nonprofits are feverishly encouraging a last-minute surge of donations ahead of the implementation of the new tax law, while also fretting the largess will precede a steep decline in the year ahead.
(snip)
At the center of the rush is the doubling of the standard tax deduction to $12,000 for individuals and $24,000 for couples that will kick in Jan. 1. That increase could translate into fewer households itemizing their taxes, which could reduce the incentive to give to charity. Only taxpayers who itemize deductions can deduct charitable contributions from their taxable income. Tim Delaney, chief executive officer of the National Council of Nonprofits, said the law is likely to lead to a decline in charitable giving of several billion dollars next year.
(snip)
Steve Taylor, senior vice president and counsel for public policy for United Way Worldwide, said because the tax law was passed so late in December, he isnt sure if large donors had enough time to push up gifts they were planning on giving in 2018. Because of that, he said the bump in 2017 may not be as large as some expect. Beyond 2017, Mr. Taylor said United Way is expecting to lose in excess of $300 million in donations due to the tax bill.
(snip)
In addition to pushing more people toward standard deductions, the law also doubles the amount of money exempted from the estate tax. That means wealthy people may have less incentive to leave money to charities in their wills because they can more efficiently pass it on to their heirs. Gifts from estates constitute about a quarter of all donations at the University of Notre Dame, Mr. Dugard said.
Read more: https://www.wsj.com/articles/charities-see-surge-of-giving-ahead-of-change-in-tax-law-1514635202
I wonder how much evangelical churches will lose and whether they will start crying..
exboyfil
(17,865 posts)of the tax law that the GOP has not thought through. Raising the threshold and reducing what qualifies for a deduction is going to drive itemizing from 30% to as low as 5% from what I saw one study said. That means contributions are 10% to 25% less valuable than before. This analysis also applies to purchasing homes.
underpants
(182,868 posts)and scribbling in the margins continuity goes out the window.
This has always been a concern regarding the "simplified"/post card tax efforts.
Having prepared returns and worked at charities/non-profits this weekend is the cash cow. People who really tax plan are writing checks a lot right now. BTW - tax prep and advising won't be deductible in this law either. I can't believe the CPA and accounting firm trade groups knew of that or they would have fought it tooth and nail.
Cosmocat
(14,568 posts)but, in todays world, so much going on, it did not even register with people.
This is going to be a real hit to non-profits.
truthisfreedom
(23,152 posts)Jesus-like party is.
groundloop
(11,521 posts)Instead of making sure that people have a minimum decent, basic quality of living the US forces them to depend on charity for food, shelter, and medical needs. This will hurt those people immensely, though I'm sure the people who wrote the law won't have a second thought about this because they're comfortable in their mansions.
question everything
(47,522 posts)We are "warned" that the Republicans will tell their constituents that if Democrats take control of the House and Senate, that they will take away their tax reductions.
I think that we will have to concentrate on the estate tax to convince voters how important it is to roll these breaks back. Also, if they will listen, that these nice tax reductions that many will see in their paycheck in 2018, will disappear in a few years.
groundloop
(11,521 posts)Our leadership needs to tout the charts showing who's really benefiting from the repub tax bill - the ultra rich and large corporations.
This damned tax bill is just a mish-mash of giveaways to the wealthy, they didn't take the time to make it at all coherent. This one appears to be far worse than Bush's, and look where that got us (although most Americans can't remember 9 or 10 years ago).
Turbineguy
(37,364 posts)on the one hand, giving to charities is the decent thing to do, on the other hand it gives republicans cover for their cruel policies.
YOHABLO
(7,358 posts)question everything
(47,522 posts)In the beginning of the year, when they were going after the ACA, there were people, miners, I think, who needed the ACA for their lives, yet they still support Trump.
nitpicker
(7,153 posts)Since my charitable contributions won't count for 2018, I pushed them into 2017.
That means the organizations probably won't be getting anything from me in 2018.
MichMan
(11,960 posts)I donate to charities because I believe in their mission & not because of any tax break. I don't itemize anyway, but that never affected how I approached charitable giving.
question everything
(47,522 posts)This has been going for so many years..
More than 20 years ago I volunteered to help with managing personal finance, including negotiating with creditors.
We had several hours of training and at some point the instructor said how clergy really do not understand and cannot help. How, for many people, tithing ten percent to the church was very important even when they could not afford it. And the consultants were trying to tell them that it did not have to be money; they could volunteer, make things, etc.