The Fiscal Cliff and What It Means for Non-Profits
There’s a new catchphrase in town and it’s called the “fiscal cliff.” These are two words that should probably never be linked but here we are, fast approaching this newly defined financial term.
The question is, what does it mean for us as taxpayers? That is difficult to answer at the moment, but here is what we do know: There will be changes to capital gains taxes, estate taxes, and most likely additional limitations to charitable deductions, especially for high income earners. What is a high income earner? Preliminary talk suggests that the definition of a high income earner will be $200,000 of adjusted gross income for an individual and $250,000 for a married couple.
I don’t know if you find this a bit unnerving, but I do both personally and professionally. While we’re not all high income earners, the changes to charitable deductions will have an effect on all of us because it will directly impact the funding that non-profits like the National Foundation for Celiac Awareness rely on to serve you.
Consider this: As reported on Philanthropy.com, a recent survey by Bank of America found that 49% of high income earners said they would decrease their giving in 2013 if charitable deductions are limited. That could deal a major blow to non-profits across the U.S.
So what’s the solution? Instead of waiting to see what changes take hold, many donors are opting to increase their charitable giving in the remaining weeks of 2012. We know with certainty what the law says about charitable deductions today.
Donors who make a gift now through December 31st will enjoy the benefit of a full tax deduction and provide NFCA (and other non-profits) the ability to use that gift in the coming year.
We encourage you to share this information with anyone considering charitable giving in the near future. By acting now, you can maximize the impact of donations – for both the donor and the charity!
I am here to help you with any questions or information that you may need. Please contact me, Kimberly Moyer at email@example.com or at 1-215-325-1306 x110.