Tax Reform and Nonprofits—Looking Ahead
A recent article published by Network for Good takes a look at the impact of the Tax Cuts and Jobs Act on nonprofits and the communities that they serve. Author Lisa Bonanno assures readers that there are plenty of potential positive outcomes that could result from the recent tax reform.
Following a brief overview of the changes made to the US Tax Code, the article offers a quick look at the potential effects that some of the reforms will have on both the nonprofit community and their donors. For example, the increase of the standard deduction to $12,000 for individuals and $24,000 for joint filers means that some taxpayers might see an increase in their disposable income. Bonanno believes that this could result in more donations to charity. Other tax code changes covered include the increase of the charitable contributions deduction, the limitation on state and local taxes, and the elimination of the Pease limitation.
Though speculation abounds about how tax reform will affect nonprofits, it’s impossible to predict with complete accuracy what will happen. The author suggests some strategies for nonprofits, including building value and working to create differentiation, in order to make the best of this unknown situation.
For more details, read the article in full at Network for Good.