Changes to 2018 Federal Tax Laws Are Impacting Adoptions Together & Other Non-Profits

The Issue

The fundamental reasons you donate to Adoptions Together have not changed. The need for your generosity has never been greater for us, and for the many 501(c)3 organizations you choose to support. But recent changes to tax laws have the potential to make a profound impact on both of us. Under previous federal tax guidelines, the charitable deduction was made available to roughly 35% of filers who itemize their tax returns. By doubling the standard deduction, the new tax law is estimated to reduce the number of itemized returns to between 5-10%. We know tax benefits are not the primary reason you choose to donate, but let’s be honest- it’s both a factor and an incentive.

Potential Outcomes

Estimates are that 60-75% of all non-profit donors are individuals- not corporations. As these donors file their 2018 tax returns, they may learn that itemizing will not be beneficial due to the higher standard deduction. The Tax Policy Center estimates this law change may reduce charitable giving in 2019 by up to $20 billion. A study by George Washington University also estimates this law change may result in the loss of at least 220,000 non-profit sector jobs.

Solutions

There are ways to give to and support Adoptions Together that will still be tax beneficial to you. Strategies exist that will allow your continued generosity to remain a tax write off. We are planning a short series of sessions with CPAs, Attorneys and Financial Advisors to help our donors learn about and become more comfortable with various donation options for both short-term and legacy giving.

Next Steps

Please sign up and we will inform you of upcoming lunch and learns or open houses to discover how you can still derive tax benefits from your contributions even if you no longer itemize. A few of the topics we will cover include:

  • Appreciated Securities
  • Bunching of gifting
  • Mandatory Required Distributions
  • Trusts and Charitable Trusts
  • CommunityFoundations- Donor Advised Funds

Adoptions Together appreciates the generosity and support you have given us over the years. We hope we can support you by making it easier for you to continuing to support organizations like ours as tax laws evolve. Thank you for being part of our family, and for making us part of yours.

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