What Does a Trump Presidency Mean for Your Philanthropy?
As 2016 comes to a close, Giving Season begins. Between 20 to 40 percent of individual charitable donations are made in the last six weeks of the year as donors take a moment to give back to the causes they care most about during the holiday season. This Giving Season, however, the future of the charitable tax deduction and federal tax reform is uncertain following a turbulent election year.
There is debate about whether the incoming administration will embrace charitable giving incentives, cap write-off amounts or do away with the charitable giving deduction entirely. Experts note that potential cuts to income tax rates may both hurt and help charitable giving. Donors may see charitable giving as less valuable to their tax planning in the short term, but they may have more money to ultimately give away in the long term.
Advisors recommend that donors maximize their giving before the end of 2016 to lock in their benefits under the current tax policy. Certain giving vehicles, like donor-advised funds, allow donors to give now, receive a charitable tax deduction in 2016 and take time to determine how to best make their philanthropic impact.