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Giving Compass' Take:
• Barron's examines the Tax Cuts and Jobs Act, speculating how the deductions might alter the habits of charitable giving across the board; the full numbers won't be known until 2019.
• One thing that is pointed out is how high-net worth donors don't often change their habits, and strategic givers pay more attention to the mission of organizations, rather than deductions.
• Here are some giving strategies based on the new tax law.
The Tax Cuts and Jobs Act, which took effect earlier this year, doubled the standard deduction. The standard deduction rose from $6,350 in 2017 to $12,000 for single individuals and $12,700 to $24,000 for those married filing jointly.
Nonprofit organizations were concerned they’d lose out on major donations this year as a result of the change, said Patrick Rooney, an economist and philanthropy professor. Households would likely donate an estimated $13.1 billion less per year, a decline of 4.6%, according to his research ...
The wealthy are least likely to change their habits, according to a U.S. Trust study on high net worth philanthropy. A majority of wealthy donors said they expect to maintain their giving levels (84%) and another 4% said they intend to increase that amount in 2018, regardless the new tax law.
Some 50% said tax breaks influenced their charitable giving, while 17% said they were influenced by tax incentives.
Read the full article about how tax cuts affect charitable giving by Alessandra Malito at barrons.com.