How will or might nonprofits be affected by tax law changes?

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dm200
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How will or might nonprofits be affected by tax law changes?

Post by dm200 » Wed Jan 17, 2018 11:58 am

I am involved with a charity that funds an international relief initiative for a remote community in a third world country. We received some relatively significant year end 2017 donations. I suspect the tax law changes were involved.

For our planning purposes, does anyone have any opinions or views on whether or if donors might reduce charitable contributions in 2018 and following?

aristotelian
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Re: How will or might nonprofits be affected by tax law changes?

Post by aristotelian » Wed Jan 17, 2018 12:00 pm

Yes, people are going to have less incentive to give in 2018 now that they are already getting the standard deduction up to $24K for couples. People who wanted to get the extra deduction made larger year end contributions in 2017. That is probably not going to continue, and in fact I would anticipate the opposite.

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Re: How will or might nonprofits be affected by tax law changes?

Post by BolderBoy » Wed Jan 17, 2018 12:03 pm

dm200 wrote:
Wed Jan 17, 2018 11:58 am
For our planning purposes, does anyone have any opinions or views on whether or if donors might reduce charitable contributions in 2018 and following?
Some might. But the true believers in the cause probably won't. Though I won't get much in the way of charitable deductions going forward, I believe in the cause and will not reduce my charitable giving due to the tax law changes.
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dm200
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Re: How will or might nonprofits be affected by tax law changes?

Post by dm200 » Wed Jan 17, 2018 12:06 pm

BolderBoy wrote:
Wed Jan 17, 2018 12:03 pm
dm200 wrote:
Wed Jan 17, 2018 11:58 am
For our planning purposes, does anyone have any opinions or views on whether or if donors might reduce charitable contributions in 2018 and following?
Some might. But the true believers in the cause probably won't. Though I won't get much in the way of charitable deductions going forward, I believe in the cause and will not reduce my charitable giving due to the tax law changes.
Right. Perhaps, just a one year advancement of 2018 donations into 2017. if that is the case, no big deal for us. We can factor that in.

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dm200
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Re: How will or might nonprofits be affected by tax law changes?

Post by dm200 » Wed Jan 17, 2018 1:36 pm

In funding organizations and projects in this remote area of this country, we face the challenge of sending the donated funds there quickly after receipt balanced by planning, evaluation and monitoring of the money. The good news in this "challenge" is that we have a lot of committed donors to the cause. From time to time, we receive criticism that we do not send funds unless and until documented projects are received and the destination entities there are validated. We believe it would be irresponsible to just send money without such "oversight". We only keep a small percentage as a cushion against the ups and downs of support.

It has not happened to us, but we know of several similar types of organizations that fund things in this same country where they had to cut off their fundraising and stop the support. While unlikely, that could happen to us and we would be able to provide a small amount of transition money.

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Re: How will or might nonprofits be affected by tax law changes?

Post by sport » Wed Jan 17, 2018 2:05 pm

It seems that many (most) people will no longer itemize their deductions. So, donations will be more "expensive" for these people. It would seem to follow that donations will decrease. The question is to what extent?

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Re: How will or might nonprofits be affected by tax law changes?

Post by DaftInvestor » Wed Jan 17, 2018 2:09 pm

After the tax law change I did move up some of my 2018 planned donations to 2017 donating far more at end of December 2017 than planned in anticipation of making less donations to the same organizations in 2018.
If you saw significant donations after the tax law was enacted this is likely people that were doing similar.
Last edited by DaftInvestor on Wed Jan 17, 2018 2:11 pm, edited 1 time in total.

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Re: How will or might nonprofits be affected by tax law changes?

Post by Inframan4712 » Wed Jan 17, 2018 2:11 pm

From politico.com:

"Newly published data from the nonprofit Tax Policy Center help to illustrate this point. And to better understand the numbers, POLITICO did its own review of the most recent Internal Revenue Service tables for how taxpayers itemized their returns in the 2015 tax year.

Among households in the $75,000 to $100,000 income range, the TPC’s tax model projects that just 10.2 percent will still benefit from charitable deduction under the new law — down from 27.1 percent. For those from $100,000 to $200,000, the drop is from 50.7 percent to 19.6 percent.

Together that constitutes a 62 percent drop in the number of these middle-class households benefiting from the charitable deduction — households that typically give a greater percentage of their adjusted gross income than some wealthier brackets.

By comparison, among those earning over $1 million a year, more than three-quarters, or 77.6 percent, will still benefit from the charitable tax deduction and their already disproportionate share of the after-tax dollar benefit will go up.

For charities, the fallout from the tax bill amounts to a one-two punch.

First, among those who most depend on middle-class donors, there is a real fear that receipts will drop since fewer families will find it practical to claim the charitable deduction.

Many households will surely continue to donate some portion of their income. But without the deduction, the economic “price” for giving goes up. And there is significant empirical evidence —outlined in a May 2017 report by the staff at the Indiana University Lilly Family School of Philanthropy — that that this will dampen future donations both for religious and secular groups.

[OT comments removed by admin LadyGeek]

In truth, it may take years before the full impact on receipts is clear. But the second, great concern for charities is immediate and one that can’t be disputed."

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Re: How will or might nonprofits be affected by tax law changes?

Post by missingdonut » Wed Jan 17, 2018 2:17 pm

sport wrote:
Wed Jan 17, 2018 2:05 pm
It seems that many (most) people will no longer itemize their deductions. So, donations will be more "expensive" for these people. It would seem to follow that donations will decrease. The question is to what extent?
I have read estimates of this as being between 4 and 8 percent.

As stated before, the after-tax cost of donating has increased for a lot of people (either with the transition to standard deduction or the reduction in the income tax rate itself). But people are not rational beings, especially when it involves their taxes, and some people in losing the deduction will just not contribute at all rather than contribute a reduced amount.

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Re: How will or might nonprofits be affected by tax law changes?

Post by keystone » Wed Jan 17, 2018 2:33 pm

Yes, I am confident that overall donations will be reduced. My charitable contributions for 2018 will likely no longer be deductible, so I am contemplating that I will reduce my contributions by the amount of the lost deduction. I suspect there are other donors who will do something similar.

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Re: How will or might nonprofits be affected by tax law changes?

Post by CAsage » Wed Jan 17, 2018 2:45 pm

I'm one of the strange ones that poured several (10 in my case) years' worth of Charity $$ into a Donor Advised Fund. I did this because it was my last year of AMT and the last year I will itemize for my Federal taxes. The challenge will be not to spend it any faster, as the temptation is to grant it all quicker since it's no longer mine! I intend to stick to my plan of regular charities, within an overall annual budget. If and when it runs down, I can pick a year when I bunch deductions for my state taxes to fill the DAF up again. So - in my case, no difference.
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Re: How will or might nonprofits be affected by tax law changes?

Post by Sockpuppet » Wed Jan 17, 2018 4:00 pm

I'm a fundraising consultant, and I don't think tax reform will have much negative impact.

Most smaller donors don't itemize to begin with so there won't be much change there.

Larger donors will still have large incomes and will likely still itemize, so again no change.

It's those mid-range donors who will have less incentive to give now, but I suspect an improving economy will offset any losses here. And among my clients these mid-range donors are a small minority.

My views are definitely contrarian in the non-profit sector, but January seems like its off to a great start already for my clients (although it's still very early).
Last edited by Sockpuppet on Wed Jan 17, 2018 4:14 pm, edited 1 time in total.

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Re: How will or might nonprofits be affected by tax law changes?

Post by Sockpuppet » Wed Jan 17, 2018 4:13 pm

Also, at the end of the day, the impact on tax reform is largely out of a non-profit's control. I know a lot of charities are worried, but there's nothing they can really do at this point.

However, the economy is strong and that's when people give. People give when they have money to give. Charities should be taking advantage of this time to raise more money rather than wasting time on how tax reform might or might not impact them.

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Re: How will or might nonprofits be affected by tax law changes?

Post by dm200 » Wed Jan 17, 2018 4:30 pm

Thanks for the added opnions and information.

Yes, there is nothing that a non-profit can actually "do", but it makes sense to try to plan or budget with a possibility that some donors at year end may have acelerated some amount of 2018 donations to December 2017. I think that is what may have happened to us -- so we should probably plan accordingly. If, however, the donations do not go down in 2018, then we have the good fortune to be able to spend the money for very worthwhile purposes.

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Re: How will or might nonprofits be affected by tax law changes?

Post by Sockpuppet » Wed Jan 17, 2018 4:38 pm

dm200 wrote:
Wed Jan 17, 2018 4:30 pm
Thanks for the added opnions and information.

Yes, there is nothing that a non-profit can actually "do", but it makes sense to try to plan or budget with a possibility that some donors at year end may have acelerated some amount of 2018 donations to December 2017. I think that is what may have happened to us -- so we should probably plan accordingly. If, however, the donations do not go down in 2018, then we have the good fortune to be able to spend the money for very worthwhile purposes.
That seems reasonable for planning purposes. Although I'd be curious how much bigger your December "bump" was compared to last December's.

But I suspect if the economy holds up that charitable giving will as well. I remember a year ago there was a lot of chatter that 2017 would be a bad year for charities and instead it seems to have been a record-breaking year for almost everyone.

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Re: How will or might nonprofits be affected by tax law changes?

Post by carolinaman » Thu Jan 18, 2018 7:30 am

It is difficult to say. My thinking is there will be a small reduction overall, but the most worthy and best run non profits will probably still do well. I am retired and use QCDs for most of our charitable giving, so the tax law does not impact me. Occasionally, I donate out of pocket for some charity and really do not think about whether this is tax deductible or not. Also, donor advised funds are an option for some. Hopefully, this will not be a big problem. We have many non profits doing great work serving the needy.

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Re: How will or might nonprofits be affected by tax law changes?

Post by bengal22 » Thu Jan 18, 2018 8:35 am

I think you will see a reduction in 2018 because of the pullups in giving during the last month of 2017. You will then see a lot of teeth gnashing in the newspapers where the tax cut will be blamed for the terrible drop in charitable giving. Then in 2019 you will see the charitable giving return to its normal rate. I believe that people are motivated to give not for tax reasons but because it is the right thing to do
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Re: How will or might nonprofits be affected by tax law changes?

Post by Doohop65 » Thu Jan 18, 2018 9:06 am

I am one of those that donated all of my 2018 donations at the end of 2017. I notified the appropriate parties what was occurring so they could plan accordingly. I, like many, will no longer itemize so a lump sum in 2017 made tax sense.

I will not donate another penny in 2018 but will resume regular giving in 2019. The charity was never about the tax deduction although it was helpful.

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Re: How will or might nonprofits be affected by tax law changes?

Post by Da5id » Thu Jan 18, 2018 9:11 am

I intend to give the same, so sample size of 1 says no change :)

I believe that people mostly don't donate for the tax deduction, in that even with the deduction you are still giving 70 cents or so of each dollar, not like you are making a profit. That said, knowing the gift is deductible may be a psychological crutch that helps people part with their money. But in any case certainly in 2018 you may see some decline if people advanced their 2018 donations to December 2017. People with DAFs will presumably give the same. The smallish percentage of people who actually will pay more net taxes may have less available to give to charity, so maybe some hit there? But that may be balanced by bigger gifts from those who are net winners.

I guess the real answer is TBD...

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Re: How will or might nonprofits be affected by tax law changes?

Post by aristotelian » Thu Jan 18, 2018 10:04 am

People don't give "for" the deduction but thededuction allows them to give more at the same cost. I agree with above, it's the folks who are on the border of itemizing that will be affected most.

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Re: How will or might nonprofits be affected by tax law changes?

Post by SuzBanyan » Thu Jan 18, 2018 10:18 am

Until we see what legislation the states pass in reaction to the Federal tax bill, it may be too early to speculate about long term effects on charitable giving. Personally, anticipating that we would not itemize in the future, we both doubled our 2017 donations and made a large donation (about 5 years worth) of appreciated securities to our DAF.

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Re: How will or might nonprofits be affected by tax law changes?

Post by wander » Thu Jan 18, 2018 1:39 pm

I can't speak for everyone, but the change in standard deduction does not reduce the amount we give yearly.

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Re: How will or might nonprofits be affected by tax law changes?

Post by GreenGrowTheDollars » Thu Jan 18, 2018 6:24 pm

We accelerated donations planned for 2018 into 2017 and also started a DAF. We will request some donations in 2018 from the DAF. All things being equal, we will make direct donations again in 2019 and possibly add to the DAF. We're looking at the every-other-year bunching strategy as a good financial idea.

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Re: How will or might nonprofits be affected by tax law changes?

Post by cherijoh » Thu Jan 18, 2018 8:32 pm

dm200 wrote:
Wed Jan 17, 2018 11:58 am
I am involved with a charity that funds an international relief initiative for a remote community in a third world country. We received some relatively significant year end 2017 donations. I suspect the tax law changes were involved.

For our planning purposes, does anyone have any opinions or views on whether or if donors might reduce charitable contributions in 2018 and following?
If you want to try and take an analytical approach to the question, I would suggest the following year-over-year analysis of the charity's donation history:
  • starting with January, calculate the YoY delta in donations (jan 2017 donations - jan 2016 donations)
  • Next calculate the difference in cumulative donations for Jan - Feb 2017 donations vs. the same period in 2016
  • Repeat for the rest of the year through November using actual donation data to get a feel for the 2017 trend in donations - i.e., up, down or flat compared to 2016
  • Now use these 11 months of data to "predict" a cumulative differential through the end of the year (basically what you think you would have seen without the impact of the tax cut) - this is an easy chart in Excel
  • Now calculate the actual cumulative YoY difference in donations
  • The difference between the actual and "predicted" would be my best estimate for the "Tax Cut bump"
At this point you could either use the predicted cumulative 12 month figure for forecasting for 2018 or you could take a more pessimistic view and assume that some of the funds raised in December 2017 are actually pre-payments of 2018 donations and reduce your 2018 forecast accordingly.

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Re: How will or might nonprofits be affected by tax law changes?

Post by Atilla » Thu Jan 18, 2018 9:28 pm

We give regularly - every 2 weeks. No mortgage (paid off - ha!)but local property and state income taxes that along with the deductible giving made it worth itemizing.

I ran the numbers to see if the new tax law would make sense to "bunch" giving into odd years to make itemizing worth it under the new law. As it stands now - itemizing will not exceed the new standard deduction.

Tax savings amounted to $1,500 every 2 years. Meh - the regular giving is much more important than $750/year. Small charities need regular income just like we do. And I'd miss the connection gotten by giving every paycheck - that's important. Plus we will be paying less in tax anyway under the new law. So while it's not optimal tax-wise - so be it.

So - yes the new tax law gave pause but ultimately will not change our giving behavior. I will review after doing year 2018 taxes in 2019.
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Re: How will or might nonprofits be affected by tax law changes?

Post by cadreamer2015 » Thu Jan 18, 2018 9:40 pm

Like many others we accelerated some contributions at the end of 2017 and started a DAF with 3-4 years of donations. So for the next several years our charitable contributions will remain about the same. Who knows after that? I'm sure we will still give to our church and other causes that are meaningful to us.

I do expect that places like Goodwill and Salvation Army will see a drop in donations of "stuff," now that those donations won't reduce many people's tax bills. I'm much more likely to take used books to the used book store now for sale than take them to Goodwill, for example. Perhaps more selling of items on Craigslist and eBay.
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Re: How will or might nonprofits be affected by tax law changes?

Post by Slacker » Thu Jan 18, 2018 10:43 pm

Anecdotally:

We are renters so the tax law changes won't change how much we contribute to charities and we didn't accelerate donations in 2017.

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Re: How will or might nonprofits be affected by tax law changes?

Post by Earl Lemongrab » Fri Jan 19, 2018 1:14 am

In my case, I knew I wasn't going to be itemizing after 2017. Besides the expanded standard deduction, I'll be going on pension here soon (inside two weeks!) and that will drop my state income amount substantially.

As I discussed in a thread back in December I created a donor-advised fund and put several years' worth of donations in to take advantage of 2017 itemizing.
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Re: How will or might nonprofits be affected by tax law changes?

Post by celia » Fri Jan 19, 2018 4:08 am

Here's another take:

Do you know, by any chance, if the donors recently turned 70.5? If the checks were not written from their personal checking accounts, there is the possibility they are QCDs (Qualified Charitable Donations).

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Re: How will or might nonprofits be affected by tax law changes?

Post by inbox788 » Fri Jan 19, 2018 4:19 pm

bengal22 wrote:
Thu Jan 18, 2018 8:35 am
I think you will see a reduction in 2018 because of the pullups in giving during the last month of 2017. You will then see a lot of teeth gnashing in the newspapers where the tax cut will be blamed for the terrible drop in charitable giving. Then in 2019 you will see the charitable giving return to its normal rate. I believe that people are motivated to give not for tax reasons but because it is the right thing to do
Monies that I need to pay taxes will be monies that won't be going to charity.

I gave my 2018 donations in 2017. Come 2019, I will have to see how much isn't going to get itemized. I will be lumping itemized items to concentrated them one year and take the standard deduction in others. What this means is that my charitable donations will peak in some years and be zero in others. If many others do the same, charities will get less in 2018, but depending on the randomness, future years will average out and only be reduced by less after tax monies donors will have. I expect average donations will go down some, but individual donations may actually rise if you don't count years when a donor does not give.

Donor used to give $1000/year, so $10000 in 10 years. If donor receives 30% tax writeoff, that's $3000 extra in tax refunds that get eliminated. If now the donor gives $2000 every other year, that's still the same total amount, but the writeoff may only be reduced, so donor is poorer and will give less comparatively.

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Re: How will or might nonprofits be affected by tax law changes?

Post by Da5id » Fri Jan 19, 2018 4:37 pm

inbox788 wrote:
Fri Jan 19, 2018 4:19 pm
Donor used to give $1000/year, so $10000 in 10 years. If donor receives 30% tax writeoff, that's $3000 extra in tax refunds that get eliminated. If now the donor gives $2000 every other year, that's still the same total amount, but the writeoff may only be reduced, so donor is poorer and will give less comparatively.
That assumes that the donors overall tax burden didn't lessen. According to the analysis I've seen, a large majority of people will see their tax burdens fall under the changes. Mind you, I don't know how those people whose taxes actually go up overlap with bigger donors. And I don't know, behaviorally, if a person who gets in your scenario loses a $3000 deduction but, hypothetically, gets a $3000 decrease in tax burden (due to lower brackets/whatever) will in fact give the same amount to charity even though it is a wash. I guess time will tell.

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Re: How will or might nonprofits be affected by tax law changes?

Post by inbox788 » Fri Jan 19, 2018 5:12 pm

Da5id wrote:
Fri Jan 19, 2018 4:37 pm
That assumes that the donors overall tax burden didn't lessen. According to the analysis I've seen, a large majority of people will see their tax burdens fall under the changes. Mind you, I don't know how those people whose taxes actually go up overlap with bigger donors. And I don't know, behaviorally, if a person who gets in your scenario loses a $3000 deduction but, hypothetically, gets a $3000 decrease in tax burden (due to lower brackets/whatever) will in fact give the same amount to charity even though it is a wash. I guess time will tell.
I have trouble seeing the "free lunch" from the tax reform. I see some of the benefits of lower corporate tax rates, but our deficit goes up by $1.5T, which ultimately will be paid in higher future taxes, or just the interest and the principal due will be kicked down the road. You can pair up offsets for some folks, but others have already paired off their benefits. Just anecdotal, but one guy was going to use his small tax reduction to pay for the increase in his affordable health plan going up. I'm still trying to figure out if I get a bigger tax break than I lose in tax deductions (living in a high (SALT ) tax state). In the aggregate, budgets have to balance, and one only has so much discretionary income, which is where I think charitable donations competes with.

I've seen a wide range of estimates, and while the majority are expected to see tax burdens fall, a good minority (I've seen estimates of 30-40%) will actually increase. And of those where the burden falls, a good portion will have small to insignificant reductions. Also, while the stimulus from the new law provides some growth, I'm concerned about the inflationary effects. Rising minimum wage costs get passed on to the customers, so while you might get paid $1/hour more, the increase in cost of the things you buy will eat into it.

IMO, for many if not most folks, the reforms will simply be a scramble of ups and downs that will pretty much wash out. Unfortunately, for charities, I think they will be net losers in the deal. I hope they're planning conservatively and don't cry about being surprised when donations drop or become more unpredictable, because I think the risks are somewhat predictable. I hope I'm wrong, and the market having a good year means folks have more and can be more generous instead of the triple whammy of a market correction, higher taxes and fewer deductions.

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Re: How will or might nonprofits be affected by tax law changes?

Post by Da5id » Fri Jan 19, 2018 5:32 pm

inbox788 wrote:
Fri Jan 19, 2018 5:12 pm
Da5id wrote:
Fri Jan 19, 2018 4:37 pm
That assumes that the donors overall tax burden didn't lessen. According to the analysis I've seen, a large majority of people will see their tax burdens fall under the changes. Mind you, I don't know how those people whose taxes actually go up overlap with bigger donors. And I don't know, behaviorally, if a person who gets in your scenario loses a $3000 deduction but, hypothetically, gets a $3000 decrease in tax burden (due to lower brackets/whatever) will in fact give the same amount to charity even though it is a wash. I guess time will tell.
I have trouble seeing the "free lunch" from the tax reform. I see some of the benefits of lower corporate tax rates, but our deficit goes up by $1.5T, which ultimately will be paid in higher future taxes, or just the interest and the principal due will be kicked down the road. You can pair up offsets for some folks, but others have already paired off their benefits. Just anecdotal, but one guy was going to use his small tax reduction to pay for the increase in his affordable health plan going up. I'm still trying to figure out if I get a bigger tax break than I lose in tax deductions (living in a high (SALT ) tax state). In the aggregate, budgets have to balance, and one only has so much discretionary income, which is where I think charitable donations competes with.

I've seen a wide range of estimates, and while the majority are expected to see tax burdens fall, a good minority (I've seen estimates of 30-40%) will actually increase. And of those where the burden falls, a good portion will have small to insignificant reductions. Also, while the stimulus from the new law provides some growth, I'm concerned about the inflationary effects. Rising minimum wage costs get passed on to the customers, so while you might get paid $1/hour more, the increase in cost of the things you buy will eat into it.

IMO, for many if not most folks, the reforms will simply be a scramble of ups and downs that will pretty much wash out. Unfortunately, for charities, I think they will be net losers in the deal. I hope they're planning conservatively and don't cry about being surprised when donations drop or become more unpredictable, because I think the risks are somewhat predictable. I hope I'm wrong, and the market having a good year means folks have more and can be more generous instead of the triple whammy of a market correction, higher taxes and fewer deductions.
I believe that your original point assumed donors as a class got no benefit from the tax changes, and hence the $3000 loss on $10000 of charity for those who can no longer itemize but used to itemize (not everyone) was simply a net loss of $3000. I'm not convinced by that or your above arguments. You may be right. You may not. The guy in your anecdote seems neither here nor there -- are you saying the tax law changes made his health care go up? If not, would he have decreased charity anyway? Discussions of the deficit and future tax law are not generally topical here so I'll not go there.

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Re: How will or might nonprofits be affected by tax law changes?

Post by inbox788 » Fri Jan 19, 2018 6:43 pm

Da5id wrote:
Fri Jan 19, 2018 5:32 pm
I believe that your original point assumed donors as a class got no benefit from the tax changes, and hence the $3000 loss on $10000 of charity for those who can no longer itemize but used to itemize (not everyone) was simply a net loss of $3000. I'm not convinced by that or your above arguments. You may be right. You may not. The guy in your anecdote seems neither here nor there -- are you saying the tax law changes made his health care go up? If not, would he have decreased charity anyway? Discussions of the deficit and future tax law are not generally topical here so I'll not go there.
I don't believe I entered any disallowed topics, and am only discussing current law, basic accounting, and economic theory, but rather than go off on a tangent, let me just list some thought on how nonprofits may be impacted by 2017 vs 2018.
2017
  • Market went up 20% in 2017, which may be higher than projections, so if people are wealthier or feel wealthier, they give more.
    Some people brought forward 2018 donations to 2017, so that increases 2017 donations.
2018
  • Carryover from 2017 market performance may make people feel wealthier, so they may give more.
    Market 2018 performance is to be determined, but were off to a very good start, so give more.
    Lower tax from tax reform may leave more disposable income so people can give more.
    Loss of tax deduction or higher threshold from standard deduction may deter some people from giving more.
    Those that advanced donations last year may pause.
Given some of these effects, I would expect 2017 donations to exceed projections and 2018 projections to fall short. Given past growth rates, it might not fall flat, but it wouldn't surprise me if the growth rate goes down.

http://philanthropyoutlook.com/wp-conte ... 7_2018.pdf
https://givingusa.org/giving-usa-2017-t ... 5-billion/

Keeping things actionable, my charitable giving will change to adapt to the new tax laws. If I don't receive a deduction, I will have less to give. Simple accounting for me. If I can lump together 2 or 3 years of giving and get some or most of the deduction, then I will do so, but that makes giving irregular (tempered by use of a DAF).

Charities may want to be conservative about any extra donations they receive in 2017 beyond what they had previously planned, and going forward, they may want to plan more conservatively the next few years until there's some data one way or another.

Silk McCue
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Re: How will or might nonprofits be affected by tax law changes?

Post by Silk McCue » Fri Jan 19, 2018 8:35 pm

You either give out of an abundance of a willing heart or you don’t. Most people that give out of that abundance will remain generous and may use tax wise strategies like bunching every other year or using a DAF, or they will just accept that they will not get as much of a tax benefit - they won’t cut back on giving. People that apply a tax savings benefit analysis as the prImary driver will do whatever those sort of people do.

In answer to the OP Cherijoh gave an excellent recommendation.

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tooluser
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Re: How will or might nonprofits be affected by tax law changes?

Post by tooluser » Fri Jan 19, 2018 8:40 pm

What about the effect on nonprofits that are not charities?
Easy come. Easy go. But the rate of change for each seems quite different.

Silk McCue
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Re: How will or might nonprofits be affected by tax law changes?

Post by Silk McCue » Sat Jan 20, 2018 8:53 am

tooluser wrote:
Fri Jan 19, 2018 8:40 pm
What about the effect on nonprofits that are not charities?
If the nonprofit had status that did not allow for the deduction of contributions in 2017 I can't see any reason that they would be impacted going forward. Unless of course, the contributor was ignorant of this and claimed the contribution in the past in error and has now become a miser and won't give because the government won't cover part of their "generosity".

Please check out this site for more information .

http://seriousgivers.org/question/are-t ... charities/

Cheers

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