Helping Donors Navigate Tax Reform

Guide to Effective Giving After Tax Reform

On December 20, 2017, 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 touch the life of 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In addition to rate cuts, a number of widely used income tax deductions, credits and adjustments were repealed or curtailed.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 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.

New resource

Sharpe Group has just 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 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.

Act now

Be among the first to share the good news with your donors. Click here to download a preview of the booklet. You can reserve copies by clicking here. We will fulfill orders based on time of receipt. 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.

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.

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