Helping Donors Navigate Tax Reform
On January 1, 2018 most of the previsions of the Tax Cuts and Jobs Act took effect. This legislation represents the most far-reaching changes to the Federal Tax Code in more than 30 years. The provisions of the new tax law will touch the life of virtually every American in some way for better or worse.
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In addition to rate cuts, a number of widely used income tax deductions, credits and adjustments were repealed or curtailed.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 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 self-fulfilling prophecies.
Resources
Sharpe Group has created “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.
SHARPE newkirk is also pleased to offer the “Federal Tax Pocket Guide.” This reference guide is ideal for advisors and more sophisticated donors. It is an effective tool for keeping your organization top of mind with the professional advisors and estate planners in your community and building goodwill among your top donors and prospects.
Who should receive “Your Guide to Effective Giving After Tax Reform”?
“Your Guide to Effective Giving After Tax Reform” is designed to help communicate the realities of tax reform in a number of ways:
- As an insert in acknowledgments of larger year-end gifts
- In a special mailing to major donors, planned gift recognition society members and others
- 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.
Who should receive the “Federal Tax Pocket Guide”?
The “Federal Tax Pocket Guide” is designed to help communicate with advisors and more sophisticated donors:
- In a special mailing to attorneys, trust officers, financial planners, accountants and other centers of influence
- Information for high net worth donors in response to inquiries about tax reform
- As a handout at professional advisory council meetings
- As an insert with major and planned gift proposals
Act now
Click here to download a preview of “Your Guide to Effective Giving After Tax Reform.” You can order copies by clicking here. You can also order by contacting us at 901.680.5300 or info@SHARPEnet.com. Sharpe can personalize the booklet with your contact information and logo on the front and/or back cover. Contact us for more information on additional customization options.
Click here for a preview of the “Federal Tax Pocket Guide.” You can order copies of this guide at this link. This guide can also be personalized with your organization’s contact information.
More information about tax reform
Sharpe has also published a White Paper featuring in-depth analysis of the impact of the new tax law on philanthropy.