Posted February 26th, 2018

Helping Donors Navigate Tax Reform

Last December, Congress enacted the Tax Cuts and Jobs Act of 2017, ushering in the most far-reaching changes in the federal tax code in more than 30 years. The provisions of the new tax law will affect virtually every American in some way.

What the law did and didn’t do…

In addition to rate cuts, a number of widely used income tax deductions, credits and adjustments were repealed or curtailed. The very good news is the charitable deduction came through the process unscathed and was even enhanced for some donors. The final version of the legislation maintained the charitable deduction and increased the adjusted gross income limitations for the deductibility of charitable gifts from 50% to 60%.

Other changes, such as the repeal of the Pease Limitation, will make charitable and other deductions more valuable for many higher income taxpayers. Full advantages of gifts of appreciated assets and directed gifts from IRAs also remain.

What to do now

Unfortunately, dire predictions of decreases in giving due to provisions of the new law were published during the summer and fall of 2017 and read by many fundraisers and donors. Unless charitable organizations and institutions act quickly to inform their donors of the positive news in the final legislation, misinformed predictions could become unfortunate realities.

New resource

Guide to Effective Giving After Tax ReformSharpe Group has published “Your Guide to Effective Giving After Tax Reform,” a helpful tool for informing donors of the realities of tax reform and charitable giving.

The content is directed to those who now deduct their gifts and are likely to continue to do so. It includes a number of strategies to help donors maximize their giving by taking full advantage of powerful incentives still in place.

Who should receive the booklet?

“Your Guide to Effective Giving After Tax Reform” is designed to help communicate tax reform’s impact on charitable giving in a number of ways:

  • As an insert in acknowledgments of larger gifts
  • In a special mailing to major donors, planned gift recognition society members and others
  • As information for donors in response to inquiries about tax reform
  • As leave-behind material for use by front-line fundraisers when donors express interest in tax reform and its impact
  • As an educational tool for all executive and senior program staff to help alleviate their fears and provide talking points when interacting with donors In informational packets at special events and other gatherings of donors.

Act now

Be among the first to share the good news with your donors. Click here to download a preview of the booklet and find ordering information. Sharpe can personalize the booklet with your contact information and logo on the front and/or back cover. Contact us at info@SHARPEnet.com or 901.680.5300 for more information on additional customization options. ■

The publisher of Give & Take is not engaged in rendering legal or tax advisory service. For advice and assistance in specific cases, the services of your own counsel should be obtained. Articles in Give & Take may generally be reprinted for distribution to board members and staff of nonprofit institutions and other non-donor groups. Proper credit must be given. Call for details.

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