Faith-based charities hoping to increase giving in 2018 have something to celebrate in the new tax law the president signed Friday. It can also provide an incentive for donors to give before the end of 2017 says Frank Nico, CBN Planned Giving Executive Director.
Not only does the new law keep the charitable giving deduction in place–there’s an added incentive for giving cash gifts. Nico says in 2018 donors will be able to deduct 60% of their adjusted gross income versus 50% under the old tax laws.
Nico says donors can also take advantage of the new law in 2017 by pushing forward charitable giving planned for 2018 into 2017 to make the most of the changing tax code. It can make sense in cases where someone is itemizing deductions this year but will take the standard deduction next year.
Nico also encourages those with a high income to consider setting up a donor advised fund before the end of the year. Fidelity, Charles Schwab and other investment groups can help create the fund. “Get an immediate tax deduction this year and then out of that you can grant dispersed funds for future years’ giving,” says Nico.
The new tax law may also encourage giving in general by roughly doubling the standard deduction for both singles and married couples filing jointly. The standard deduction for singles will be $12,000 in 2018 and $24,000 for married couples.
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