Tax reform in 2018 doubled the standard deduction and many people have declined to itemize deductions as a result. While that might make filing taxes quicker or easier, nonprofit organizations are experiencing a decline in donations as a result.
Franklin County has more than 200 nonprofit groups (including religious organizations) essentially competing for funds.
Most groups have been able to tout that “your contribution is tax deductible,” motivating donors to give.
However, with fewer taxpayers itemizing deductions, this has become a nonstarter. Middle-class filers are the most affected by this while wealthier earners might have higher than the $12,000 standard deduction. To be clear, there is nothing stating a tax filer cannot file deductions, but it is unlikely to be of any benefit to the filer, according to a December article by Forbes.
Nationally, there has been a decline over the past year in charitable contributions, because of the lack of ability to claim such donations as tax deductible, according to Credit Karma. But there are still reasons to give.
Nonprofit organizations frequently rely on donations to operate and have little or no access to grant money. From parent-teacher organizations to groups like Habitat for Humanity, all rely on donations.
Every little bit helps. Think of the impact an organization has on society and those who fall under the group’s mission. School-related groups fund various expenses that otherwise might vanish from a school district’s budget. Prom, field trips, band equipment or football equipment: Where would the kids be without this funding? Every penny adds up to dollars and dollars can create a huge impact. We’ve all seen the ads that say “for just $0.75 a day, your contribution can help feed a child for a month.”
In Franklin County, most of the organizations help local folks in need. So, in essence, you are helping a neighbor. By helping your neighbors you are building a better Franklin County. Those who might not have help otherwise can benefit from your generosity.
Humane societies and other animal rescue groups help those who have no ability to help themselves. Animals can’t just walk in and ask for help. They have to be found, and often they require medical care, which is costly for a nonprofit organization. Without monetary donations, paying medical bills would be impossible. There are other donations that help save such organizations money. These include donations of food and supplies, which allow an organization to fund more health care or more space, but these items are still charitable contributions.
By giving of money, time or items, you can also teach your children generosity and understanding of those who might not be as fortunate as you and your family might be. Children remember going to the shelter and donating blankets, or they decide to create fundraisers themselves and it is the most awesome thing to watch a child so giving.
At the end of the day, your contribution might not be tax-deductible, but that shouldn’t deter you from giving.