Tax Law Changes Leave Charitable Incentives Unscathed

The Tax Cut and Jobs Act, despite what you may have heard, actually leaves the deduction for charitable giving completely unscathed. The charitable deduction has its roots of origin in the War Revenue Act of 1917. As Congress attempted to raise revenue to fund America’s involvement in World War I, there were growing concerns that overall charitable giving would decrease.

Of the three most notable tax deductions available to tax payers — mortgage interest, state and local taxes, and charitable gifts — the charitable deduction was the only one to remain intact under the TCJA. So, despite concerns that charitable donations may fall as an ancillary effect of the bill, it is important to remember that charitable giving stems from an individual’s desire to positively impact the world and that this desire does not disappear due to changes in tax laws.

See Ray Caraway, Tax Law Changes Leave Charitable Incentives Unscathed, BizWest, March 7, 2018.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.