‘Nuanced' tax law is no gift to charities

‘Nuanced' tax law is no gift to charities

Printer-friendly version

"It is going to be somewhat tricky in communicating to people about this change to charitable giving in part because Congress did not technically touch the century-old charitable giving incentive," said Tim Delaney, president and CEO of the National Council of Nonprofits, a Washington D.C.-based advocacy for charitable organizations. "However, by doubling the standard deduction, they made it less valuable to approximately 21 million Americans."

"This is a nuanced issue with a severe impact," Delany added. "Things can be miscommunicated too easy, and there is too much at stake for that."

Economists with the Tax Policy Center estimate the number of households that itemize will shrink from about 37 million in 2017 to about 16 million in 2018 under the new tax law. They project charitable giving could fall by as much $21 billion annually over the next couple of years.

Delaney doesn't think individual giving will drop quite that far or that quickly.

"It will take Americans completing their tax returns for a year or two and then seeing that (a) there is not really the incentive and (b) not really that much more money in their own personal savings from taxes, and therefore they will not be giving as much," he said.

Find Your State Association of Nonprofits

Find Your State Association of Nonprofits

Connect with local resources and expertise


Connect With Us

1. Sign up for updates

Stay up-to-date with the latest nonprofit resources and trends by subscribing to our free e-newsletters.

2. Follow us on social media