The most recently released version of the House GOP plan has a number of provisions that may come as a surprise to charitable organizations and donors. The current proposal would allow donors to deduct up to 60% of adjusted gross income for their cash donations to private operating foundations (POF) and public charities. The bill would also require art museums claiming POF status to remain open to the public for a minimum of 1,000 hours per year. This impetus for this provision is most likely due to an investigation overseen by the Senate Finance Committee. The results of the committee’s work indicated that a number of private art museums receiving preferential tax treatment were not open enough to justify the tax break.
See Paul M. Roy, Eric Fischer, Tax Plan Comes With a Few Surprises for Charities and Donors, Wealth Management.com, November 6, 2017.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.
