The team at Innovia Foundation helps you stay up-to-date on legal and policy developments that could impact planning recommendations for your philanthropic clients. It is our pleasure to serve as a sounding board for attorneys, CPAs, and financial advisors as you set in motion your clients’ wishes to support their favorite charities and important community causes.

To that end, as you begin to field questions from clients about tax reforms on the horizon, we’re zeroing in on a handful of skimmable sources to quickly deliver need-to-know trends in charitable tax planning:

Key provisions of the 2017 Tax Cuts and Jobs Act are very much on the radar. You’re likely well aware of the impending expiration of the TCJA, scheduled for sunset at the end of 2025. It’s wise to keep an eye on rapidly-evolving legislative activity. Relevant to your clients and the charities they support, according to a recent analysis by the Dorothy A. Johnson Center for Philanthropy, the so-called “tax cliff” coincides with three major trends: declining public trust in institutions, a decades-long decline in donor participation despite rising total donations, and ongoing policy debates about charitable tax incentives. 

A “universal charitable deduction” still has momentum. The Charitable Giving Coalition, representing hundreds of nonprofits, is urging Congress to pass the bipartisan Charitable Act to install a permanent charitable tax deduction for non-itemizers. Tax news coverage late last year signals that the effort aims to counter a sustained decline in U.S. charitable giving linked to the TCJA, which increased the standard deduction and reduced itemizing, disproportionately removing tax incentives for lower- and middle-income donors. 

Industry advocacy remains high. As context for the issues your charitable clients may be facing as laws change, it’s important to know that the Council on Foundations, an industry association, advocates for a supportive regulatory environment to strengthen philanthropic organizations’ ability to address community needs and advance civil society. The Council publishes regular updates about the current issues impacting charitable giving, potential legislative outcomes, and the nuances of the legislative process, including budget reconciliation.

Please reach out to our team to discover how Innovia can help your clients achieve their charitable goals regardless of what happens with tax reform. Philanthropy is a critical factor in sustaining our community’s quality of life, and we look forward to working with you and your clients to ensure that our region continues to thrive.