Indiana nonprofit leaders prepare for impact of tax bill
Nonprofit leaders in Indiana say it's too early to determine the impact of new tax rules on charitable organizations nationwide.
INDIANAPOLIS (AP) -- Nonprofit leaders in Indiana say it's too early to determine the impact of new tax rules on charitable organizations nationwide.
The Indiana Business Journal reports that regulations taking effect are expected to reduce the number of donors, who lower their federal tax bills by using a deduction for giving.
The charitable deduction was added to the federal tax code a century ago as an incentive for taxpayers to donate. It applies only to people who itemize their deductions.
But the tax reform 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 nonprofit leaders say they're hopeful donors will continue to give from their hearts, and not to reduce their tax bills.
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