New rules will discourage charitable donations.
The Council on Foundations estimates the new tax code will drain $16 billion to $24 billion a year from the nonprofit sector, according to an op-ed article in The Los Angeles Times.
Nonprofit CEO Bryan McQueeney points out that the Tax Cuts and Jobs Act preserves the deductibility of charitable contributions, but it also it restructures the system so that millions will lose incentives to give.
The new rules raise the standard deduction to $24,000 for a married couple. For millions of taxpayers, it will no longer make sense to itemize, and that means fewer charitable gifts, since you can only deduct donations if you itemize.
In California, he writes, the effect of the new law will be particularly painful, because the reforms limit the deductibility of state and local income and property taxes to $10,000. In a high-tax state, many residents’ state and local tax bills will far exceed this limit, and the loss of this valuable deduction will leave them with less to give to charity.
Read the full story:
The Council on Foundations estimates the new tax code will drain $16 billion to $24 billion a year from the nonprofit sector, according to an op-ed article in The Los Angeles Times.
Nonprofit CEO Bryan McQueeney points out that the Tax Cuts and Jobs Act preserves the deductibility of charitable contributions, but it also it restructures the system so that millions will lose incentives to give.
The new rules raise the standard deduction to $24,000 for a married couple. For millions of taxpayers, it will no longer make sense to itemize, and that means fewer charitable gifts, since you can only deduct donations if you itemize.
In California, he writes, the effect of the new law will be particularly painful, because the reforms limit the deductibility of state and local income and property taxes to $10,000. In a high-tax state, many residents’ state and local tax bills will far exceed this limit, and the loss of this valuable deduction will leave them with less to give to charity.
Read the full story:
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