Thinking about when to give? Now is the time.
The new tax law is estimated to result in a decrease
in charitable giving to the tune of $13-$20 billion and a loss of at least
220,000 non-profits sector jobs as cited in a recent study by George Washington
University. The first factor driving this dramatic change is the increase in
the standard deduction and the corresponding drop in the number of people
itemizing; currently 35% of filers itemize their tax return and it is estimated
to drop to 5%-10%. Second, the new tax law more than doubles the size of
estates that will be subject to the federal estate tax to over $22 million.
In addition to tax law changes, the nonprofit
community is also seeing a reduction in government spending to provide services
to people in need. The tax law’s impact is coming at a time when the private
sector— comprising donors like you— is already being asked to dig deeper to
meet critical community needs.
Now is the time to reflect why we give. I was taught
at an early age to care for the elderly and help those less fortunate than I. Beginning
with my first job out of college, I have tried to live the lessons learned as a
child by giving time, effort, and money to support individuals and my community.
I left a promising corporate career to work in the nonprofit sector.
I care deeply about my community and Shanti’s
clients, and yet I find myself hesitating for the first time in my life. Without
the tax deduction for charitable giving, will I continue to give at the level I
have consistently given all my life? How much was my generosity tied to the tax
benefit? The needs within my community have not changed—in fact, many will say
they are only increasing. The need is there, how will I respond?
My initial instinct was to reduce my level of
giving. With the tax change I am no longer “saving” money by claiming a tax
deduction for giving, but I am now paying taxes on what I give. It is costing
me more to give. Now is the time to stop and think about why you give. Connect
with your own story of personal giving, and your own motivations. On
reflection, I am committing to not reducing, but increasing my giving
because the need is there. What will you do?
3 comments:
I'd like to know how everything is going with this. I alwyas find www.nexter.org here for the news and breaking news headlines updates !!!
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Very good points made by Patricia. And just to add a few lines to her comments - there are so many worthy charitable organizations to give to (Habitat for Humanity, Veterans Organizations, etc.). So, its not only how much to give, but what organization gives you the most bang for the buck. Just my two cents. JHawley
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