Tax Reform

Although the itemized deduction for charitable contributions won’t be cut out, changes will be felt.

Because most other itemized deductions will be eliminated in exchange for a larger standard deduction (e.g., $24,000 for joint filers), charitable contributions AFTER 2017 may not yield a tax benefit for many because they won’t be able to itemize deductions. If you think you will fall into this category, please consider accelerating some charitable giving into 2017. Please click here to make a donation to the CFV’s Unrestricted Fund which supports the Foundation’s granting program for area nonprofits or to make a gift to any other funds being managed by the CFV.

In other aspects of the new law, the repeal of the Johnson Amendment was removed during the tax reform negotiations. The Amendment prohibits 501(c)(3) organizations from engaging in partisan politics or risk losing tax-exempt status. It was authored by then Sen. Lyndon Baines Johnson in 1954.

The CFV has supported efforts to keep the Johnson Amendment intact and will remain vigilant, along with other charities, foundations, and houses of worship, against any efforts to weaken or repeal this Amendment’s protections which are crucial to the nonprofit sector’s integrity.

This entry was posted in News, News & Events. Bookmark the permalink.