Yorkie wrote: ↑<span title="Tue Apr 02, 2019 7:41 pm">5 years ago</span>
s a non US resident, could you explain what those changes are Feinstei?
There have not been any changes to US tax law which would inhibit a "major sponsor" from contributing. US residents pay multiple taxes (local, State, and federal) all of which have their own rules and guidelines. In this case, the federal tax is the issue.
To put it simply, charitable gifts are tax deductible for federal taxes; however, the new tax laws diminish or eliminate this benefit for those whose incomes are below a certain threshold and who are thus giving less overall. That is, major donors who can give a lot of money, should in most instances, continue to have the tax incentive to donate to Libera and other charities.
Allow me to oversimplify just a little bit as there is more to US tax law than this: We have a sort of basket of tax offsets which is called the "standard deduction" ($12,200 for an individual). This offset is a fixed dollar amount which reduces the amount of income subject to taxation. As an example: Someone earning $50,000 would be taxed as though he or she only earned $37,800.
If various offsetting expenditures (such as charitable gifts, various medical expenses, mortgage payments, non-federal taxes, and other things) exceed this $12,200 number then extra tax benefits kicks in (woohoo!). But if the offsets sum to less than that figure then they get exactly 12,200 as a deduction against their taxes - so no extra benefit.
So what does this mean? Lower income earners get no extra benefit for additional charitable giving because they would have to give more than they could afford to exceed that $12,200 number. In contrast, higher income earners exceed that figure handily due to other qualifying offsets related to a higher mortgage payment or other types of taxes and incomes; and therefore get the full benefit. Right or wrong? I don't know.
In addition, higher income earners and charitable givers can now deduct even more money than before! Before the new tax law there was a limit of 50% of this adjusted income (
adjusted gross income) on giving; so after you reached this threshold you would get no more tax benefits (it's still a lot!). Now that limit has been raised to 60%!
https://www.fidelitycharitable.org/arti ... ving.shtml
So what does this mean to major US donors? Give more!
What does it mean for regular donors like me who get little or no tax benefit? Give anyway! Giving to Libera is about helping out an organization we care about; we don't give enough to realize thousands of dollars in tax benefits so that was never our motivation to donate in the first place.