Charities’ Fear Under Tax Bill: Less Money to Help the Needy
- 6 years ago
Charities’ Fear Under Tax Bill: Less Money to Help the Needy
(“My donors,” said Mr. Kimbrough of the United Way of Greater St. Louis, “have my cellphone.”)
Some 26,000 to 28,000 major donors nationally give a total of about $500 million a year to United Way, in gifts of $10,000 or more, Mr. Taylor said.
“If you are a taxpayer who itemizes,” the email said in part, “it probably makes sense to accelerate
some charitable contributions into 2017 to get a larger income tax deduction this year.”
Ellen Gilligan, the foundation’s chief executive, said the federal tax legislation moved so quickly
that many donors were unaware of its provisions and how it might affect their taxes.
Donors give for altruistic reasons as well as tax breaks, Mr. Taylor said, but the increase in the standard deduction is expected to have an impact.
“Eliminating the tax incentive,” she said, “has the potential to have a very negative impact on charitable giving.”
United Way Worldwide, ranked the largest charity in 2017 by donations by Forbes, is recommending
that its community-based affiliates contact important contributors to highlight the changes that are coming, said Steve Taylor, the charity’s vice president of public policy.
The United Way of Greater St. Louis, for instance, which serves Missouri
and Illinois, expects top donors to contribute 6 percent more than what they gave in 2016, said Orvin Kimbrough, the group’s president and chief executive.
(“My donors,” said Mr. Kimbrough of the United Way of Greater St. Louis, “have my cellphone.”)
Some 26,000 to 28,000 major donors nationally give a total of about $500 million a year to United Way, in gifts of $10,000 or more, Mr. Taylor said.
“If you are a taxpayer who itemizes,” the email said in part, “it probably makes sense to accelerate
some charitable contributions into 2017 to get a larger income tax deduction this year.”
Ellen Gilligan, the foundation’s chief executive, said the federal tax legislation moved so quickly
that many donors were unaware of its provisions and how it might affect their taxes.
Donors give for altruistic reasons as well as tax breaks, Mr. Taylor said, but the increase in the standard deduction is expected to have an impact.
“Eliminating the tax incentive,” she said, “has the potential to have a very negative impact on charitable giving.”
United Way Worldwide, ranked the largest charity in 2017 by donations by Forbes, is recommending
that its community-based affiliates contact important contributors to highlight the changes that are coming, said Steve Taylor, the charity’s vice president of public policy.
The United Way of Greater St. Louis, for instance, which serves Missouri
and Illinois, expects top donors to contribute 6 percent more than what they gave in 2016, said Orvin Kimbrough, the group’s president and chief executive.