“The first comprehensive tax overhaul in more than 30 years moved closer to completion on Friday as the Senate passed a bill, voting along party lines, that contains many measures that will affect charities, foundations, and the people they serve,” reports Alex Daniels in Saturday’s (12/2) Chronicle of Philanthropy (subscription required). “Perhaps the biggest goal common to nonprofits of all stripes—a provision that would allow all taxpayers, not just those who itemize their returns, to take a tax deduction—was not included in legislation approved by either [the House or Senate versions of the bill]. Many nonprofit leaders [say] its exclusion … will eliminate the incentive to give for most Americans…. Both the House and Senate versions of the bill call for a doubling of the standard deduction, which means far fewer people would itemize—and therefore be eligible for a charitable deduction. The result could be a $13 billion hit on charitable giving each year…. As the bills worked their way from committee to the House and Senate floors, charitable advocacy organizations could not muster support for a ‘universal deduction’ that would have allowed people to write off charitable gifts even if they didn’t separately itemize them.” The article includes discussion of the Johnson Amendment and other changes to tax policy that affect nonprofits.
Posted December 5, 2017