As we posted, the U.S. House of Representatives and the U.S. Senate passed and sent to the President for signature legislation that makes significant changes to the U.S. tax code. The changes are the broadest re-write of the U.S. tax code since the 1986 act and could have a widespread impact on tax-exempt organizations and charitable giving. The following is a very brief summary of the rules impacting exempt organizations and charitable giving:
Rules Impacting Charitable Donations
- Increase in AGI Limit. The income-based percentage limit for charitable cash contributions by individuals to public charities increases from 50 percent to 60 percent of Adjusted Gross Income (“AGI”).
- Itemized Deductions. The standard deduction is increased from $6,350 to $12,000 for singles and from $12,700 to $24,000 for married couples filing jointly. Thus, fewer individuals will be itemizing deductions, which includes charitable deductions. Many commentators have speculated this increase in the