Charitable Giving: Potential Changes Ahead

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On February 16, Aronson’s Craig Stevens participated with the Charitable Giving Coalition (CGC) at the 100 years of Giving Fly-In Day to mark 2017 as the 100th anniversary of the charitable tax deduction. The group met with Senate and House representatives from Virginia and West Virginia to discuss tax reform and how the charitable contribution deduction might be affected.

The CGC was formed in 2009 in response to proposals at the time from the Obama Administration and Members of Congress, which would have limited the tax deduction for charitable contributions. Currently, Jason Lee the interim President of the Association of Fundraising Professionals leads the CGC. Furthermore, the Coalition is:

  • A unique, unified voice representing a broad cross-section of nonprofit organizations from across the country.
  • Comprised of more than 175 organizations, including individual nonprofit organizations, large national and international charities, and several associations and umbrella groups that represent the charitable sector.
  • Dedicated to preserving a charitable giving incentive that ensures our nation’s charities receive the funds necessary to fulfill their essential philanthropic missions.

Americans are typically generous, contributing almost $265 billion to charities in 2015 per Giving USA. At the meeting, the group recommended that Congress adopt a universal charitable deduction available to all taxpayers as an “ above the line “ amount before arriving at adjusted gross income such as IRA deductions or even alimony. This would be a shift from current policy where charitable contributions are treated as an itemized deduction that can only be utilized by a taxpayer if they exceed the standard deduction allowed. The House blueprint and President Trump’s tax plan would vastly increase the standard deduction, and reduce the number of taxpayers who itemize from approximately 30% of taxpayers to 5% of taxpayers. The proposed Trump plan also places a hard cap on itemized deductions at $100,000 for individuals and $200,000 for married filing joint. The American Enterprise Institute estimated President Trump’s plan could eliminate more than $17 billion in annual giving. If the plan succeeds, the nonprofits that support every facet of life in our communities such as education, research, health services, housing and shelter, job training, arts, culture, environmental protection, historic conservation and preservation, civil rights, and more will be negatively impacted.

For more information, please visit Stay tuned for updates on tax reform under the new administration.

About Craig Stevens

Craig Stevens has written 81 post in this blog.

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