New Tax Law May Negatively Impact Charities
A source in the Philanthropy News Digest article predicted the decline to be nearly $14 billion in charitable giving in 2018.
According to H&R Block, virtually all taxpayers are affected by the new changes. Standard deductions will double under the new TCJA, becoming $12,000 for individuals and $24,000 for families.
Because of that increase allowed in standard deductions, the Philanthropy News article indicates those who itemize deductions may no longer benefit from doing so, resulting in a decline in small gifts to charities.
The TCJA also doubles the estate and gift tax exemption to $11 million for individuals and $22 million for families, meaning individuals can now give more money to family members at death without incurring estate taxes.
“This increased exemption amount is anticipated to reduce the amount some individuals give to charity at death,” according to the Foundation for The Carolinas website.
Each provision of the TCJA took effect January 1 and will remain in place until December 31, 2025 unless modified by further legislation.