On Dec. 2, the Senate passed its version of the Tax Cuts and Jobs Act (S.1). Now that each chamber has passed a version of the bill, it must go to a conference committee to work through differences and draft a single version of the bill that will be sent for another vote in both the House and Senate. If it passes those, then it will go to the President for signature.
On November 1, The House released H.R. 1, The Tax Cuts and Jobs Act, with several representatives from the nonprofit sector voicing concerns that it would generate dramatic and negative consequences for America’s nonprofits and their constituents.
The Senate bill on tax reform was released November 9, and while many analysts in our sector feel the Senate’s version is not as potentially damaging as that of the House, there are still concerns that the bill does not fully address the components necessary to preserve charitable giving, as it limits the charitable deduction rather than expanding it to all taxpayers by way of a universal charitable deduction. Read The Independent Sector’s summary of the Senate’s tax reform and its recommended call to action.
The Charitable Giving Coalition is urging all members of the Senate Finance Committee to vote yes on an amendment introduced by Senators Debbie Stabenow and Ron Wyden that would allow an above-the-line deduction for charitable contributions. The maximum deduction would be limited to 60% of modified adjusted gross income and would phase out at higher income levels (by 3% for every dollar of taxable income above $266,700 for single taxpayers, $320,000 for married, and $293,550 for head of household. View the Coalition’s full release here.
The Association of Fundraising Professionals (AFP) and the Charitable Giving Coalition are urging everyone to continue to reach out to the U.S. Senate regarding its tax reform bill and push Senators to support a universal charitable deduction. Visit AFP’s website for talking points and sample messaging for communicating with your Senator.
Even though the Thanksgiving holiday is approaching, please reach out to your two U.S. Senators, and encourage your Board members to do so as well. Your engagement in this critical issue matters.