News for Professional Advisors
Legislative Focus: The Charitable Act
Tax deductibility of donations has changed with the times, and another piece of in-process legislation, if passed, would again reward charitable-minded tax filers who do not itemize, at least for tax years 2023 and 2024.
The Charitable Act, as it is known, would allow deductions of up to one-third of the applicable standard deduction for non-itemizers.
As background, under the higher standard deduction passed as part of the Tax Cuts and Jobs Act of 2017, many donors who’d previously deducted their charitable donations lost that ability.
Indeed, to the dismay of many nonprofits, tens of millions fewer households itemized their deductions in the years following the increased standard deduction, removing part of the incentive to make charitable gifts. The Charitable Act would strive to alleviate some of the negative impact on charities.
With potential restored deductibility in the works — and again, it’s early in the process and not yet law — keep in mind that the Sioux Falls Area Community Foundation is here to help your clients organize their charitable giving through a donor advised or other type of fund.
As the tradition of change continues for charitable giving, know that we’ll continue to be here to monitor legislative changes and emerging trends.
Want to learn more? We’re always here to help.