The House and Senate have released their final version of the Tax Cuts and Jobs Act, which is expected to go to final vote this week. A number of provisions in the bill are expected to prove detrimental to the charitable sector, including:
- Doubles the standard deduction, effectively removing the tax incentive for charitable giving for the majority of taxpayers
- The estate tax remains in place, theoretically maintaining the charitable giving tax incentive, but the exemption was doubled so only the most wealthy Americans would benefit from the tax incentive.
- The bill places a new excise tax on private colleges and university with large endowments.
- No changes were made to regulating donor-advised funds, despite some nonprofits advocating for a mandatory payout period.
Chronicle of Philanthropy has an excellent summary of the provisions of the final bill.
We encourage you to continue to contact your lawmakers and urge them to vote “NO” on the Tax Cuts and Jobs Act.
More on the Tax Bill
“Religious givers — more generous than the average American — are among millions of donors who face decreased tax incentives on their contributions under the early versions of tax bills in Congress.
That’s bad news for houses of worship as well as local charities that religious givers tend to support as generously or, in some cases, more so than their secular neighbors.” [Washington Post]