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Chicago, IL —
Charities are concerned that the wealthy may not give this year like they have in the past because of worries over future taxes and the end of other tax breaks.
This USA Today story says that political gridlock may make the fourth quarter — typically the time of the year when most large charities receive big donations — a challenging time.
There are a few reasons, the USA Today story notes, for the concerns.
• A tax break expired that allowed retirees to withdraw up to $100,000, as long as those funds when to charities and charity officials believe that without it, giving will sink.
• The real estate tax is in gridlock and Republicans want to repeal it permanently. A study a few years back showed that if it was repealed, giving to charities would drop 12 percent.
• The possibility of higher tax rates has many worried, as the Obama administration weighs what to do with the Bush tax cuts.
A lot of issues are wrapped up in this one.
• Contact a few local charity organizations and get their take on the impact they think each one may have on their organization and giving in general. Have they heard concerns about the three bulleted items from folks who typically give this time of year?
• Talk to someone who understand the political ramifications of some of the tax break issues noted above and what decisions they believe new political leaders may make and what that will all mean for charities.
• Is this a perfect storm for local charities, when you factor in the issues above and an economy that still hasn't recovered? Take a look at the pattern of giving in your community pre and post recession and find out if charity officials are more nervous this year than past recession years?
• Are charities getting more creative with their marketing campaigns and who they go to for fund raising based on the economy and political situation in the country?
Charities are concerned that the wealthy may not give this year like they have in the past because of worries over future taxes and the end of other tax breaks.
This USA Today story says that political gridlock may make the fourth quarter — typically the time of the year when most large charities receive big donations — a challenging time.
There are a few reasons, the USA Today story notes, for the concerns.
• A tax break expired that allowed retirees to withdraw up to $100,000, as long as those funds when to charities and charity officials believe that without it, giving will sink.
• The real estate tax is in gridlock and Republicans want to repeal it permanently. A study a few years back showed that if it was repealed, giving to charities would drop 12 percent.
• The possibility of higher tax rates has many worried, as the Obama administration weighs what to do with the Bush tax cuts.
A lot of issues are wrapped up in this one.
• Contact a few local charity organizations and get their take on the impact they think each one may have on their organization and giving in general. Have they heard concerns about the three bulleted items from folks who typically give this time of year?
• Talk to someone who understand the political ramifications of some of the tax break issues noted above and what decisions they believe new political leaders may make and what that will all mean for charities.
• Is this a perfect storm for local charities, when you factor in the issues above and an economy that still hasn't recovered? Take a look at the pattern of giving in your community pre and post recession and find out if charity officials are more nervous this year than past recession years?
• Are charities getting more creative with their marketing campaigns and who they go to for fund raising based on the economy and political situation in the country?
