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EO Highlights from New Tax Bill

December 21, 2017

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EO Highlights from New Tax Bill

December 21, 2017

Authored by: Keith Kehrer

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

NEW TAX CHANGES – WHAT YOU NEED TO KNOW

December 20, 2017

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Today, Congress passed a sweeping tax bill, as widely expected over the last few weeks. The bill passed solely along party lines, with no Democrats voting for the bill.  President Trump is expected to sign the bill into law, shortly.

The changes in the transfer tax laws made by this bill are as follows:

  • The gift and estate tax exemption is doubled beginning January 1, 2018, from $5,000,000 per person to $10,000,000, indexed for inflation.  For 2018, this equals $11,200,000 for individuals and $22,400,000 for married couples. The increase applies to the generation-skipping transfer tax exemption, as well
  • The foregoing increase of the gift, estate, and GST exemptions is set to expire in 2026, when the exemptions would revert to $5,000,000/$10,000,000 figures, adjusted for inflation.  This raises the question of whether, upon such expiration, there could be a so-called claw-back/penalty on any gifts made prior to 2026 which exceeded

EO Update: e-News for Charities & Nonprofits

December 20, 2017

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Early Due Dates for W-2, W-3 and Form 1099-MISC 

Employers face a January 31, 2018, due date for filing 2017 Forms W-2 and W-3 with the Social Security Administration. This date applies to both electronic and paper filers.

Form 1099-MISC is due to the IRS and individuals by January 31 when reporting non-employee compensation payments in box 7.

Penalties for failure to file correct information returns or furnish correct payee statements have increased and are now subject to inflationary adjustments. These increased penalties are effective for information returns required to be filed after December 31, 2015.

Form 1098-T Reporting Changes and Limited Penalty Relief for 2017 Returns 

Eligible educational institutions are required to report the total amount of payments received for qualified tuition and related expenses from all sources during the calendar year on Form 1098-T, Tuition Statement.

Announcement 2016-42 provides relief from penalties under Section 6721 and 6722 to 2017 Forms 1098-T.

How to Develop and Sustain an Effective, Engaged, Nonprofit Board

December 14, 2017

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Do you want to strengthen your board’s effectiveness? Do you want your board and members to be vitally engaged and forge the best possible working partnership with your executive and other staff in order to achieve more fully the organization’s mission? This workshop is for current and aspiring nonprofit staff executives and board leaders, including incoming board members, who want to learn and apply promising practices based on the latest research for making their boards even more effective and their staff-board relationships more productive and satisfying. It will also provide an opportunity to share with peers the greatest challenges and successful strategies for strengthening boards. The learning activities will mix plenary presentation, exercises and discussion,a  panel with a diverse set of nonprofit and philanthropic leaders, and small, break out group discussions. Takeaways include tools and exercises designed to increase board performance.

The workshop will address topics such as:

(1) the

More Scrutiny of Donor Advised Funds

December 7, 2017

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More Scrutiny of Donor Advised Funds

December 7, 2017

Authored by: Keith Kehrer

Notice 2017-73, released on December 4, 2017, describes potential approaches that may be taken to address issues raised regarding the use of donor advised funds (“DAF”). The Treasury and IRS are considering developing proposed regulations under § 4967 of the Internal Revenue Code (Code) that would, if finalized, provide that: (1) certain distributions from a DAF that pay for the purchase of tickets that enable a donor, donor advisor, or related person to attend or participate in a charity-sponsored event result in a more than incidental benefit to such person under § 4967; and (2) certain distributions from a DAF that the distributee charity treats as fulfilling a pledge made by a donor, donor advisor, or related person, do not result in a more than incidental benefit under § 4967 if certain requirements are met. In addition, the Treasury Department and the IRS are considering developing proposed regulations that would

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