{"id":1026,"date":"2017-11-18T13:09:09","date_gmt":"2017-11-18T18:09:09","guid":{"rendered":"https:\/\/businesslaw.smithrayl.com\/blog\/?p=1026"},"modified":"2023-11-28T13:36:50","modified_gmt":"2023-11-28T18:36:50","slug":"effects-of-tax-reform-on-charitable-organizations","status":"publish","type":"post","link":"https:\/\/www.hpindiana.law\/business-blog\/effects-of-tax-reform-on-charitable-organizations\/","title":{"rendered":"The Effects of Tax Reform on Charitable Organizations"},"content":{"rendered":"<p>Although the tax reform bill just passed by the U.S. House of Representatives retains the income tax deduction for individuals who make contributions to charitable organizations (i.e., organizations that are tax exempt under Section 501(c)(3) of the Internal Revenue Code), it may nonetheless have significant effects on the amount of charitable giving by Americans. The reason lies in the increase in the standard tax deduction for individuals and the elimination of other deductions.<\/p>\n<p><u>Increasing the Standard Deduction<\/u><\/p>\n<p>The tax code provides several types of deductions that reduce the amount of tax owed by individual taxpayers, including deductions for home mortgage interest and contributions to charitable organizations. However, the tax code also provides a minimum \u201cstandard deduction\u201d for taxpayers who have less than that amount in itemized deductions. Taxpayers who itemize deductions receive a tax benefit by making a charitable contribution, but not those who take the standard deduction. For example, the after-tax cost of a $100 contribution by most itemizing taxpayers in the 25% tax bracket is only $75. For taxpayers who take the standard deduction, the cost of a $100 contribution is $100 in both before- and after-tax dollars.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.hpindiana.law\/business-blog\/effects-of-tax-reform-on-charitable-organizations\/\"  title=\"Continue Reading The Effects of Tax Reform on Charitable Organizations\" class=\"more-link\">Continue reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Section 501(c)(3) organizations that rely on contributions from individuals should plan for the possibility of decreased revenues.  Those that rely heavily on contributions from middle-income individuals should expect the greatest impact.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14,20],"tags":[],"class_list":["post-1026","post","type-post","status-publish","format-standard","hentry","category-non-profit-organizations","category-tax"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Effects of Tax Reform on Charitable Organizations &#8212; Indiana Business Law Blog &#8212; November 18, 2017<\/title>\n<meta name=\"description\" content=\"Section 501(c)(3) organizations that rely on contributions from individuals should plan for the possibility of decreased revenues. Those that rely heavily on contributions from middle-income individuals should expect the greatest impact. &#8212; November 18, 2017\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.hpindiana.law\/business-blog\/effects-of-tax-reform-on-charitable-organizations\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Michael R. Smith\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Effects of Tax Reform on Charitable Organizations &#8212; Indiana Business Law Blog &#8212; November 18, 2017","description":"Section 501(c)(3) organizations that rely on contributions from individuals should plan for the possibility of decreased revenues. Those that rely heavily on contributions from middle-income individuals should expect the greatest impact. &#8212; November 18, 2017","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.hpindiana.law\/business-blog\/effects-of-tax-reform-on-charitable-organizations\/","twitter_misc":{"Written by":"Michael R. Smith","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.hpindiana.law\/business-blog\/effects-of-tax-reform-on-charitable-organizations\/#article","isPartOf":{"@id":"https:\/\/www.hpindiana.law\/business-blog\/effects-of-tax-reform-on-charitable-organizations\/"},"author":{"name":"Michael R. 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