Helping You Make the World a Better Place
Congress considers changes to America’s income tax structure, here are the proposed changes (as reported by the Chronicle of Philanthropy) and how they might effect charities:
Both the House and Senate bills would:
- Double the standard deduction, reducing the number of taxpayers who itemize. As a result, millions fewer American would have a tax incentive to give to charity.
- Increase to 60 percent the share of income that taxpayers can write off for charitable donations.
- Levy a 20 percent tax on nonprofit compensation in excess of $1 million.
- Set a 1.4 percent excise tax on the investment income of the biggest, richest private universities.
Where the House and Senate bills diverge:
- The House version would loosen a ban on nonprofits endorsing or spending on political campaigns, often referred to as the Johnson Amendment. The Senate bill includes no such provision.
- The Senate bill would double the size of the estate-tax exemption — currently $5.49 million per individual. House Republicans would do away with the tax entirely in six years.
- The House bill would set a 1.4 percent excise tax on private foundation investment income. The Senate version would leave in place the current system, in which foundations pay either 1 percent or 2 percent, depending on how much they’ve paid out to charity in recent years.
Remember, if the House and Senate bills are different, they will have to be reconciled in a conference committee and ultimately, any final bill must be signed by the President before it becomes law. Stay tuned….
Nonprofit organizations make communities more vibrant. Churches, educational institutions, camps, health care providers, theaters, museums, zoos, libraries, social services agencies, and many more organizations provide flavor to our cities, towns, and neighborhoods.
At the heart of every successful nonprofit there is a dedicated corp of friends, supporters and volunteers who donate time, talent, and treasure to the organization, maintaining its operations so it can do good for the community.
Of course, keeping these organizations functioning effectively also takes substantial resources, and an organized plan for securing those resources is essential.
Located in Grand Rapids, Michigan, Hopkins Fundraising Consulting helps nonprofit organizations maximize their fundraising effectiveness. We work throughout the Midwest and specialize in:
- Aiding organizations as they build an internal fundraising framework.
- Assisting organizations in strengthening their annual fund.
- Helping nonprofits plan, initiate, and implement major capital and/or advancement campaigns.
- Providing support services that build overall organizational capacity for fundraising success.