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Has the new tax law affected your charitable giving?

Home Tax Reduction Has the new tax law affected your charitable giving?

  • childay childay 
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    With the increase in standard deduction and limitation on SALT deduction, have you changed your charity habits?  Is anyone bunching donations or creating a DAF that otherwise would not?

    #181388 Reply
    q-school q-school 
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    Joined: 05/07/2017

    no change

    no daf

     

    #181400 Reply
    Avatar Bmac 
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    Status: Physician
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    Joined: 10/21/2017

    Yes. I opened a DAF at the end of 2017.

    #181445 Reply
    MPMD MPMD 
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    Joined: 05/01/2017

    no change.

    SALT thing is going to hit us very hard, hoping lower rates make up for it.

    back of the envelope tells me it’s going to be pretty close to a push.

    #181460 Reply
    Vagabond MD Vagabond MD 
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    Status: Physician
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    Joined: 01/21/2016

    Yes, we frontloaded our 10+ year old DAF in 2017 with 5-7 years of expected charitable contributions…and then we gave about a third of that to charity in 2018, our largest charitable year ever (including our largest single gift ever). We still gave another couple thousand dollars in smaller donations for which we will not get Federal tax deduction.

     

    "Wealth is the slave of the wise man and the master of the fool.” -Seneca the Younger

    #181465 Reply
    Avatar docnews 
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    Not in amount but just in timing. I pre gave at the end of 2017 for the first half of 2018 (dipped into my E fund) and my federal taxes are almost exactly the same amount despite making $70k more this year. A DAF couldn’t help me since I didn’t have tons of cash laying around.

    #181469 Reply
    Liked by ITEngineer
    Avatar docnews 
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    Also if you give around 10% of a doctor salary you are still going to be itemizing. SALT limit isn’t hitting me at all since I’m in a no income tax state so I take about a $3k estimated state sales tax deduction instead.

    #181470 Reply
    Avatar StarTrekDoc 
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    nope. Salt hurts, but the brackets help. Deductions remain the same.

    #181477 Reply
    Avatar GXA 
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    We also front-loaded a significant amount into a DAF – so according to our tax return we gave quite a bit less, but the charities are still getting about the same amount.

    I read recently our local food bank received $500,000 less in contributions last year.  Ouch!

    #181533 Reply
    Avatar Tim 
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    medical school scholarship sponsor

    SALT has and will impact household charitable giving.
    Tax laws influence behaviors. The limit of $10k is such that just the school district tax exceeds the limits.
    The “hurdle” of itemized vs standard changed my behavior, not my taxes (pretty much a wash).
    Smaller local charities now get a “no” where it used to be “yes”. The role of large corporate donations will increase. Gone from many checkbooks are the $100-$200 checks for a good cause. Zero in mine.
    I did pay for a roofing job due to Harvey since all the millions of the “big boys” are still tied up and debating. That was an individual with rain coming in. It would be non-deductible anyway.
    Result is my assets are now taxed, that impacts my income taxes, that drives a change in my charitable giving.
    I have no reason to believe many households and many small charitable organizations will trend that way as well. By the way, no one will track it either. I am sure that roof wasn’t reported as income! Non-deductible and non-taxed income.

    #181544 Reply
    Drop it into MD Drop it into MD 
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    I am bad about tracking my giving.  We give regularly to church and they tally for us but for all the other local organizations that we give to through out year I have not tracked.  So no I did not change what I did this year but I will likely take the standard deduction because of the SALT

    #181593 Reply
    The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
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    Joined: 05/13/2011

    With the increase in standard deduction and limitation on SALT deduction, have you changed your charity habits?  Is anyone bunching donations or creating a DAF that otherwise would not?

    Click to expand…

    We bunched a lot of our 2018 donations into 2017 to take advantage of the higher tax rate in 2017. We’re actually taking the standard deduction for 2018. The rest of our usual 2018 charitable contributions were made the first week of January using a DAF. I didn’t need a DAF to do that, but it’s nice for the anonymity and convenience.

    We’re giving more each year (more than we spend now) but that has far more to do with the success of WCI, LLC than any tax laws.

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #181594 Reply
    Avatar Larry Ragman 
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    Status: Other Professional
    Posts: 553
    Joined: 08/30/2018

    With the increase in standard deduction and limitation on SALT deduction, have you changed your charity habits?  Is anyone bunching donations or creating a DAF that otherwise would not?

    Click to expand…

    We bunched a lot of our 2018 donations into 2017 to take advantage of the higher tax rate in 2017. We’re actually taking the standard deduction for 2018. The rest of our usual 2018 charitable contributions were made the first week of January using a DAF. I didn’t need a DAF to do that, but it’s nice for the anonymity and convenience.

    We’re giving more each year (more than we spend now) but that has far more to do with the success of WCI, LLC than any tax laws.

    Click to expand…

    Do you plan to bunch charitable deductions going forward (e.g., take the standard deduction in alternate years)?

     

    #181628 Reply
    portlandia portlandia 
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    Status: Physician
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    Joined: 07/07/2017

    Hasn’t affected our giving habits. I’m clergy, and while this is completely anecdotal, I’ve noticed a slight decrease in overall charitable giving to churches and nonprofits in my area for 2018. Givings rates on average are already so low in the US that I believe the higher threshold for itemizing in the new tax law seems to adversely affect it further.

    Click to expand…

    Just curious, did these organizations notice an uptick in donations at the end of 2017? Maybe more people will be bunching donations in alternate years?

    #181856 Reply
    Avatar Larry Ragman 
    Participant
    Status: Other Professional
    Posts: 553
    Joined: 08/30/2018

    Hasn’t affected our giving habits. I’m clergy, and while this is completely anecdotal, I’ve noticed a slight decrease in overall charitable giving to churches and nonprofits in my area for 2018. Givings rates on average are already so low in the US that I believe the higher threshold for itemizing in the new tax law seems to adversely affect it further.

    Click to expand…

    What is your basis for the assertion that giving rates are low? I’ve always understood Americans to be generous with their contributions. Here is a recent summarized report documenting that the absolute number at least is high. Perhaps you are literally focused on rate and not amount, which is increasing? See https://givingusa.org/giving-usa-2018-americans-gave-410-02-billion-to-charity-in-2017-crossing-the-400-billion-mark-for-the-first-time/

    #181882 Reply
    Liked by ENT Doc

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