Tax increases will have biggest impact on major donors

Thursday, January 10, 2013
 | 
Charlie Butts (OneNewsNow.com)

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.

Dunham, Rick (Dunham and Company)"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 donors.

"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 changes.

Consider Supporting Us?

The staff at Onenewsnow.com strives daily to bring you news from a biblical perspective. If you benefit from this platform and want others to know about it please consider a generous gift today.

MAKE A DONATION

Comments

We moderate all reader comments, usually within 24 hours of posting (longer on weekends). Please limit your comment to 300 words or less and ensure it addresses the article - NOT another reader's comments. Comments that contain a link (URL), an inordinate number of words in ALL CAPS, rude remarks directed at other readers, or profanity/vulgarity will not be approved. More details

SIGN UP FOR OUR DAILY NEWSBRIEF

SUBSCRIBE

VOTE IN OUR POLL

What's your feeling about the James Comey/Loretta Lynch/Hillary Clinton/email server scandal?

CAST YOUR VOTE

GET PUSH NOTIFICATIONS

SUBSCRIBE

LATEST AP HEADLINES

Al-Qaida set to gain as Islamic State disintegrates
Latest: Officials report progress in stopping blazes
Under fire, Trump defends call to soldier's grieving family
Court refuses to revive defamation suit against Bill Cosby
NFL maintains status quo on anthem policy
Sessions defends Comey firing, ties it to Clinton email case
Trump accuses Democrat of fabricating fallen soldier story

LATEST FROM THE WEB

Crusading lawyer takes action to disbar Comey
George Soros transfers $18B to his liberal philanthropic foundation
'Justice League' now in peril amid Ben Affleck groping allegations
Gowdy: Comey needs to be in the hot seat again over Clinton
Obama WH knew about Russian bribery plot before uranium deal

CARTOON OF THE DAY

Cartoon of the Day

REASON & COMPANY

NEXT STORY
A look at this year’s Social Security changes

An expert in retirement security is adding his two cents to thoughts on this year's changes with Social Security.