Benjamin Franklin once said, “In this world nothing can be said to be certain, except death and taxes.” Oh, how true this statement is. I can’t help but wonder if Mr. Franklin had insight into just how convoluted the tax system would one day become, creating confusion and often frustration for everyone.
As with any type of organization, nonprofits must follow federal and state tax laws. These laws help to protect the integrity of the organization and its’ operation.
In 2017 H.R.1 (Tax Cuts and Jobs Act) was signed into law. This new law brings a potential shift in the way daily operations and fundraising activities are handled by nonprofits. From the fundraising perspective these are very uncertain and often downright scary times for organizations wondering if this new law will cause fewer people to donate or donate less.
The following provisions in the Act may impact donors and the tax benefits they receive from making charitable donations (Takagi, 2018). This could have huge implications on donations that nonprofits rely on to exist. Gene Takagi, with the NEO Law Group suggests that “as a result, charitable giving is expected to drop from between $12 billion to $20 billion per year.”
Each of these tax law provisions comes with a lengthy detail of information. Navigating through the detail might be overwhelming but understand you don’t have to do it alone.
It helps to have reliable resources to navigate through the cringe worthy tax law maze. Join the Volunteer Center on February 7th for the “Keep Your Nonprofit Out of Hot Water, 2018 Tax Law & Human Resources Updates” workshop. This workshop will provide the most-up-to-date tax law and Human Resource concerns. It will address how your organization will be affected by the 2018 changes. Another option is to visit the National Council of Nonprofits website and check out “Resources on How the New Federal Tax Law Impacts Charitable Nonprofits.”
“In the philanthropic world, you’re looking at the toughest problems that exist…problems that have resisted all the intellect & money thrown at them over the years.” Warren Buffet
Michelle has been a volunteer with the Volunteer Center of McHenry County for a year serving as a marketing volunteering.