“The sweeping tax overhaul passed in 2017 could result in 2.6 million fewer households making charitable donations and $19.1 billion less donated each year through 2025, a study released by nonprofit advocate Independent Sector finds,” writes Michael S. Fischer in Monday’s (6/10) Think Advisor. “The new tax law allows only those who itemize returns to deduct their charitable gifts. It doubled the standard deduction, greatly reducing the number of taxpayers who itemize. Independent Sector commissioned Indiana University Lilly Family School of Philanthropy, in partnership with the University of Pennsylvania’s Wharton School of Business, to examine several policy proposals under consideration by the nonprofit sector that could extend charitable giving incentives to non-itemizers. The report focuses on five policy options that aim to offset the continued decline in donors, unequal treatment of taxpayers’ charitable gifts in the tax code and the potential decrease in charitable giving resulting from the tax law…. The researchers found that all five policies could bring in more donor households, and four could generate more charitable dollars than would be lost because of the tax changes.” Click here for Independent Sector’s Charitable Giving and Tax Incentives Report.
Posted June 14, 2019