CFW 17.11.14

Posted by National Catholic Development Conference on Nov 14, 2017 11:47:00 AM

Tax Reform Update: Senate Bill Introduced and Possible Universal Charitable Deduction Amendment

On Thursday, the Senate Finance Committee released its version of a tax reform bill, which reflects many of the same provisions and the House version of the bill, which is known by the same name: The Tax Cuts and Jobs Act. The two bills are similar on issues like preserving the charitable deduction, the amount of the standard deduction and share of taxpayer income eligible for charitable deductions, and nonprofit executive compensation.

Notable differences affecting charities in the Senate bill include no private foundations excise tax, no reporting requirement, and no repeal of the Johnson Amendment. The Senate bill also keeps the estate tax levy in place, but doubles the size of the estate, while the House version would eliminate the tax entirely after 2024.

Universal Deduction Amendments

Now that both bills have been released, the top focus of the nonprofit sector is the addition of a universal deduction amendment. Both bills call for simplifying the federal tax structure by doubling the standard deduction and reducing the number of itemizers. However, removing the tax incentive for taxpayers to itemize their deductions has the unintended consequence of resulting in an estimated $13 billion reduction in charitable giving, which was confirmed in a memo last week from the Joint Committee on Taxation.

Two proposed amendments, one from Sens. Debbie Stabenow (D-MI) and Ron Wyden (D-OR), and one from Sens. John Thune (R-SD) and Pat Roberts (R-KS), could potentially alleviate the potential loss in charitable donations. Both bills support the idea of a “universal deduction,” which would enable non-itemizers to deduct charitable donations. The Alliance of Charitable Reform, of which NCDC is a partner, has a thorough summary of both proposed amendments.

More on tax reform:

More need to know news:


Wealth Transfer…What Wealth Transfer? Part 1

“Nonprofit managers have spent the last 20 years hearing about the “Great American Wealth Transfer,” which was predicted to usher in a Golden Age of Philanthropy with trillions upon trillions of dollars expected to flow to the U.S. philanthropic world.

“Unfortunately, for a number of reasons, this charitable windfall hasn’t yet materialized.” [The Sharpe Group]

More emerging trends:

Tell Us Tuesday

Tell us what matters to you! Use the hashtag #TellNCDC to share your answer to this week's question on Twitter and Facebook.


What Your Nonprofit Needs to Know About Amazon Alexa

Most than just a digital assistant, Amazon Alexa is evolving into software that empowers and proliferates the Internet of Things… The era of nonprofits embracing the Internet of Things has begun. [NP Tech for Good]

More tips and tactics:


Inspirational insight of the week: 

"We must pray without tiring, for the salvation of mankind does not depend on material success; nor on sciences that cloud the intellect. Neither does it depend on arms and human industries, but on Jesus alone."

- Saint Frances Xavier Cabrini

Turning Facebook Likes into Donors and Dollars

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Catholic Fundraising Weekly is a digest of the latest trends shaping Catholic fundraising today. The content featured in this weekly newsletter is specifically curated for Catholic fundraisers and includes news, trends, tips, and tactics, in addition to relevant news from the Catholic community and a bit of inspiration for those called to the ministry of fundraising.

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