(from Associations NOW) The repercussions of the Tax Cuts and Jobs Act of 2017 are only now coming to fruition. The main issue is with the change in standard deductions. A significant number of people went from itemizing their taxes to taking the standard deduction, meaning they can’t write off individual gifts to nonprofits. In years past itemizers have made up about 30 percent of filers, while experts estimate this year that will dip to 5-10 percent. The silver lining for nonprofits is that donors who weren’t itemizing their taxes are unlikely to change their giving patterns for tax reasons. Large donors may also bundle gifts so that they accumulate enough for a deduction in one year, and then not give for another two to three years.
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