Charitable Deduction Updates
Potential changes to incentives for charitable giving in the tax code have been an ongoing part of deficit reduction and tax reform discussions for a number of years. Recent tax reform proposals offered by the House Ways and Means Committee and the Trump Administration would retain the charitable deduction. However, additional proposals on the individual side to lower rates and increase the standard deduction would have the unintended consequence of reducing charitable giving.
In the previous Administration and Congress, President Barack Obama consistently put forward a proposal to cap the charitable deduction at 28 percent for high-income taxpayers – and Congressional leaders explored other proposals to establish a hard-dollar aggregate cap or a minimum threshold for claiming itemized deductions.
The Columbus Jewish Foundation values the preservation of tax policies that encourage charitable giving, and will inform its constituents of legislative proposals and developments that ensure America’s strong tradition of charitable giving and that will encourage Americans to contribute to the charitable causes of their choice by providing tax deductions for their gifts.