Indiana nonprofit leaders prepare for impact of tax bill

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

File image

INDIANAPOLIS — Nonprofit leaders in Indiana say it’s too early to determine the impact of tax changes on charitable organizations nationwide.

The regulations are expected to reduce the number of donors who lower their federal tax bills by using a deduction for giving, the Indiana Business Journal reported.

A study from the Indiana University Lilly Family School of Philanthropy estimates that total giving could drop by $13.1 billion. That would be the biggest drop since the Great Recession.

The charitable deduction was added to the federal tax code in 1917 as an incentive for taxpayers to donate. It applies only to people who itemize their deductions.

But the tax law signed by President Donald Trump is increasing the standard deduction from $6,300 to $12,000 for individuals and $12,700 to $24,000 for couples. The change could mean that more people will opt for a standard deduction.

The nonprofit leaders said they hope donors will continue to give from their hearts, and not to reduce their tax bills.

“We’re trying to take the positive, forward-thinking approach,” said Kent Kramer, president and chief executive at Goodwill of Central and Southern Indiana. “Many in our field feel it may be into November and December before we can really see the true impact of this change.”


Information from: Indianapolis Business Journal,

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Notice: you are using an outdated browser. Microsoft does not recommend using IE as your default browser. Some features on this website, like video and images, might not work properly. For the best experience, please upgrade your browser.