Will the new tax laws impact my charitable giving?  

Are you wondering if the new tax law changes will impact your charitable giving? Here are some ideas to help you determine how the new law might affect your financial situation:

  • Lower Income Tax Rates: Many donors will find themselves with more disposable income due to lower tax rates. You may now have an opportunity to give more to the charities you love.
  • Higher Standard Deduction: This benefit has nearly doubled. Many donors will find that the standard deduction will lower their tax bill more than itemizing will. Research shows, however, that while tax savings earned by making charitable gifts makes donors feel good, what REALLY makes donors feel good is giving out of the passion and love they have for Wartburg College. That’s the No. 1 motivation for giving to Wartburg. 
  • Cash Contributions for Higher Income Donors: The limit for cash gifts is now 60 percent of AGI, up from 50 percent. Donors can still carry over any excess deductibility for up to five years. This may encourage higher income donors to increase their cash gifts.
  • Estate Tax Exemption: The estate tax exemption has increased to $11.18 million for individuals and $22.36 million for married couples. This affects only those with very high net worth. This may provide an increased incentive, however, for more donors to:
    • Make larger gifts during their lifetimes to obtain an income tax deduction.
    • Increase the size of the gift in their will that they currently have in place.
    • See and enjoy the impact of their gift while they are living.  

Published Summer 2018