2018 New Tax Changes

 

We have much to think about with our new tax changes, especially those laws that affect nonprofits…

One of the biggest concerns is with the standard deduction. The standard deduction has risen significantly in these new changes. Nonprofit policymakers say that this will discourage giving because the increased standard deduction may out-weigh the charitable deduction; thereby, discouraging giving.

My opinion is that when you and I give to charities, we do not do it for the tax deduction. (although that is an incentive). We do it because we believe in the nonprofit’s mission. The biggest single thing, in my opinion, that affects our national charitable giving is a bad economic year or global disasters, where all attention is driven to a specific problem or geographic area. For example, national economic issues such as our “mortgage meltdown” decreased giving significantly. Natural disasters such as Hurricane Harvey in Houston or Hurricane Katrina in New Orleans increase giving but to a specific region. If you are outside of that region, your donations may be affected.

Changes in our tax laws come and go but you have weathered these changes over the years and you are still serving. I encourage you to continue to do a great job in your community, attract donors who are interested in your mission and keep focused on the work you have

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Jenai Morehead

Jenai Morehead

Consultant

Jenai Morehead works with entrepreneurs and nonprofits In the areas of:

  • Grants: finding money; writing & reviewing proposals
  • Program development: Developing new programs & redesigning old ones.
  • Corporate compliance: Applying for initial nonprofit status. Helping nonprofits to resolve government regulatory/ reporting problems.
  • We work with: Churches, Board members, Founders, business people

Specialties: Capacity building, making nonprofits attractive to funders, finding sustainable forms of income, working with nonprofits who have government or funding compliance issues, research and grant/proposal writing.