Category Archives: News

2017 Tax Cut Law and Implications for Nonprofits

President Trump has signed the 2017 Republican tax cut into law.  Here are the implications for nonprofits: The law doubles the standard tax deduction for individuals which will likely lead to fewer Americans itemizing their taxes, effectively eliminating the charitable tax incentive for many Americans.  This may (or may not) have an effect on giving in 2018 and beyond. There is a continued prohibition on nonprofits supporting or contributing to candidates and campaigns. The estate tax exemption was doubled to $22 million, perhaps affecting how much wealthy Americans give to charity. The law includes a 1.4% excise tax on investment income on some private colleges and university with large endowments. Charities would be hit with an excise tax of 21%...
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Lilly Report

A recent report by the University of Indiana Lilly Family School of Philanthropy discovered some interesting data, including: 55% of Michigan households give to charity.  The most generous state was Utah with nearly 80% of households giving to charity.  The least generous state was Wyoming. The average annual household giving for Michigan families was $2,353.  Compare this to the median income in Michigan of $51,084 and you find that Michiganders give about 4% of their income to charity. Single women out give single men: $1,455 to $1,341 (annual giving) Married couples out give couples living together: 71% of married couples give to charity, only 29% of couples living together give to charity. Since 2000, the percentage of Americans who give...
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House and Senate Income Tax Bills and the Potential Effect on Charities

HOUSE AND SENATE INCOME TAX BILLS: HOW THEY COMPARE (as reported the by the Chronicle of Philanthropy): 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...
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