Tax Changes Boost Nonprofit Donors, But Total Giving May Drop

0:00On this March 17, here's what's shaping the world. New research shows that tax changes from last summer will give millions more Americans giving to nonprofits, but overall donations could still drop. A report from the Indiana University, Lilly Family School of the Philanthropy, predicts 6 to 8.7 million extra donors over time. At the same time, total gifts to charity might fall by about $5.6 billion each year. The boost for everyday donors comes from a new deduction up to $1,000 for singles and $2,000 for couples. This helps the 87% of people who take the standard deduction instead of itemizing. Non-profits stand to gain if folks learn about this perk. On the flip side, the wealthiest donors face tighter rules. Itemizers in the top tax bracket now get deductions capped at 35% of income down from 37%. Plus, everyone who itemizes needs to give more than 0.5% of their income to qualify for the break. Corporate giving takes a hit too, with a new 1% floor on pre-tax profits for deductions.

1:05That could cut business donations by around $1.5 billion a year. The researchers say it's less severe than first thought. These shifts won't hit right away, and bigger economic factors will likely matter more in 2026. The projected drop is under 1% of last year's $592.5 billion in total giving. Still, all scenarios point to some decline. D&N is sponsored by our partner. Check out the episode description. A pillow that sounds as good as it feels. Built for listening in bed. S-O-L-I-SOLY-PILLOW.COM