I know everyone is scared. So many messages coming at us – how could we not be afraid for ourselves and/or the nonprofit sector with the dreaded Trump tax plan?
Well, I am here to tell you in a few words – don’t stress the unknown. And guess what – the final tax bill that is bound to happen soon is STILL unknown.
If you are seeing nonprofit sector commentators making recommendations like donors should be fronting their gifts in 2017 to donor advised funds in anticipation of losing out on tax deductions in 2018 and beyond – my advice is to completely ignore it.
In fact, the way I am seeing things, the charitable income tax deduction may be one of the few deductions left intact and may be even more important in 2018 and beyond.
And, all of this talk about the negative impact on nonprofits of raising the standard deduction (because it may take some people out of being itemizers) is ludicrous! Those people who are barely itemizers are NOT your major gift donors. They are the type of donors who will still send you a $50 or $100 a year annual check, regardless of the deduction.
So, don’t lose sleep over a tax law overhaul that is far from done and may end up benefiting the nonprofit sector.
See, that wasn’t so bad!
Dear Doctor Jonathan:
The House plan to eliminate the federal estate tax and the Senate plan to double the federal estate tax exemption is conspicuously not mentioned in your commentary. So, your thoughts on the future of planned giving professionals?
I hadn’t seen that Senate plan, yet! I like it but somehow feel like Trump and the Republicans want to be on record as eliminating the estate tax like Bush II did (which isn’t really a repeal, just hocus pocus)
I agree! All of these worry warts should chill and just continue doing their jobs building relationships. If you do the gifts will come in.