In December 2017, comprehensive tax reform was passed. In working with non-profit organizations, many are concerned with how the new tax laws will impact charitable donations in 2018 and beyond. The concern comes from the fact that, in the past, charitable donations were deductible for individuals who itemized deductions on their individual tax returns. While this deduction is still allowed and the limits have actually increased under the new tax law, the concern is that the standard deduction increased, therefore resulting in less people estimated to be able to itemize their deductions in 2018 and beyond.
While the tax changes impact everyone differently, as I have talked to people in the last couple months I have observed the following:
While we can’t say for sure how the new tax law will impact each organization or each donor, I believe most individuals give to organizations from their heart and not based on their tax return.
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