Friday, January 12, 2018
According to a new study by the Tax Policy Center, the recently passed Tax Cuts and Jobs Act will shrink the number of households that claim itemized charitable deductions from about 37 million in 2017 to about 16 million in 2018. In addition to reducing the number of taxpayers who itemize, the Act’s changes to individual tax rates will make the marginal tax benefit of charitable giving drop – on average falling from 20.7 percent to 15.2 percent.
Nonprofits will need to redouble their efforts to attract individual contributors, since all signs point to those gifts coming from fewer, richer donors.