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Tax reform to decrease donations, trigger new giving strategies, experts say
Publication year - 2018
Publication title -
nonprofit business advisor
Language(s) - English
Resource type - Journals
eISSN - 1949-3193
pISSN - 1531-5428
DOI - 10.1002/nba.30423
Subject(s) - tax deduction , incentive , economics , public economics , tax credit , tax incentive , tax reform , business , law and economics , actuarial science , state income tax , microeconomics , gross income
While the overall economic impact of the tax overhaul passed by Congress at the end of 2017 may be unclear, the ramifications for the philanthropic community are more or less agreed upon: Charitable giving among Americans is likely to decline in 2018, with estimates ranging from about 1.7 percent up to 5 percent compared to 2017. That's mainly due to provisions in the new law that double the standard deduction. With a higher standard deduction, fewer taxpayers will itemize their deductions, and the tax incentive for donating to charity goes away.