The new tax law has important changes for charitable deductions that have many charities worried donations will decrease.
When Congress first began talking about changing the tax laws, charities were particularly concerned about the changes made to deductions. The primary worry was that any increase in the standard tax deduction would result in fewer people donating to charity and then itemizing those deductions to get a tax break.
Lowering tax rates for individuals, also limits the value of donating to charity for tax deductions.
As a result of these three changes, Forbes reports that 21 million people will no longer take charitable deductions on their taxes in "21 Million Taxpayers Will Stop Taking Charitable Deductions Under the New Tax Law."
The tax law also doubles the estate tax exemption which could limit the number of charitable bequests that are made. However, just because people are no longer taking charitable deductions on their taxes, does not mean they will stop giving to charity.
Many donations are made for reasons that have little to do with tax planning and much more to do with generosity.
If you would still like to leave money in your estate plan for charity, do not let the new laws stop you. Talk to an estate planning attorney about getting an estate plan that reflects your generosity.
Reference: Forbes (Jan. 11, 2018) "21 Million Taxpayers Will Stop Taking Charitable Deductions Under the New Tax Law."