The fiscal cliff did some damage to charitable giving, but it's
not the disaster feared late last year.
The tax rate is going up for individuals making $400,000 or
more, the capital gains tax is increasing from 15 to 20 percent,
and the Pease Amendment has been reinstated for households earning
$300,000 or more, implementing a three-percent reduction in
deductions. Rick Dunham of Texas-based Dunham+Company was asked what impact
non-profits and churches might see from donors.
"The $250,000 to $500,000 earners will probably see
a pretty minimal impact, but the higher the earnings the more the
impact," he tells OneNewsNow. "Because as you move away from that
$300,000 threshold, with that difference if a person makes a
million, million and a half, two million, their overall deductions
will be reduced pretty dramatically."
The impact on non-profits, he says, will depend on the makeup of
"If you have a very broad base of supporters who tend to give
the $50 and $100 gifts and that are middle-class to upper
middle-class or lower upper-class, I think there's going to be
virtually no impact," Dunham says. "But if you're an organization
highly reliant on major donors with very big gifts, I think you
could potentially see a huge impact."
Dunham recommends that non-profits build a diversified portfolio
of supporters. Giving Research.net has a chart reflecting the