How Does the New Tax Law Affect Your Organization and Donors?

By James A. Donovan • January 5th, 2018

Happy New Year!

We hope 2018 will be a great year for your organization as you strive to help people, pets and the planet.  Here are a few thoughts on the new tax law from Certified Financial Planner Joe Bert of Certified Financial Group in Altamonte Springs, Florida.

  • Doubling of the standard deduction (from $12,000 to $24,000 for married taxpayers) means fewer people will itemize thereby losing the tax benefit of the contribution
  • Doubling the estate tax exemption from $5.6M to $11.2M reduces the incentive to reduce the size of one’s estate before death
  • Maintains the benefit of giving up to $100,000 of required minimum distributions from retirement accounts
  • The benefit for giving appreciated assets (rather than writing a check) to charity remains in place

Now this may seem discouraging from a tax savings/incentive to give; however,we know from studies over the years by the Association of Fundraising Professionals, Chronicle of Philanthropy and Council for the Advancement of Education that people give because they want to make a difference and believe in your organization’s ability to do so.

As you begin your fundraising this year, provide your donors and prospects three good examples of how their gift does make a difference.  Ask some of your better known donors to give you a quote, too.

All the best for $ucce$$ in 2018.

Please share any thoughts on this Blog or other issues with us.  And if you need help this year in identifying the prospects with the greatest financial ability to give, check out our eZscreen service.


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