How the Tax bill affect the motivations of individual donors and foundations to donate to your nonprofit?
Paraphrasing Raising Change’s Kathy LeMay; ‘This bill nominally retains the existing itemized deduction for charitable donations, but by nearly doubling the standard deduction, it effectively puts this important incentive to give out of reach for 95 percent of American taxpayers, according to a study from the Lilly School of Philanthropy. That study projects the reduction in the number of people who itemize would result in a decrease in charitable giving in the U.S. by up to $13 billion annually. Other studies set the cost even higher. The change in giving policy in the bill could be devastating for many organizations. You are no doubt familiar with the flurry of giving at the end of the calendar year, motivated by deductions. With this tax bill, that motivation goes away for the vast majority of taxpayers. We agree with the assessment of our colleagues at the Council on Foundations, “This will result in billions of dollars less in charitable giving, which means billions less going to meet growing community needs.”
NOW LET’S MAKE LEMONS INTO LEMONADE TOGETHER! IABWF must be part of your solution. What is missing from the disheartening and accurate analysis above is the opportunity within the tax bill. The tax bill DOUBLES the estate tax. From the nearly $20 Trillion life insurance market, billions of dollars of death benefit will no longer be needed for estate taxes. Last year over $100 Billion of death benefit terminated in the senior market. This year that number could double? triple? more? IABWF works with charities to accept donations of unwanted life insurance policies at no cost to the charity or the donor! Donors choose. IABWF pays. Charities receive. The bill was signed this morning. The clock is now running. Let’s work together to help ensure a better world for us all!
Please contact us. Happy Holidays and a Happy Healthy Successful 2018!