Spring 2018 issue of Horizons

INDUSTRY UPDATE NOT-FOR-PROFIT

Tax Law Impact to the Not-For-Profit and Colleges and Universities Sectors by Kim Ryan, CPA, JD, LL.M

P resident Trump signed the most only does the Tax Cuts and Jobs Act of 2017 (the Act) affect businesses and individuals, it further materially impacts tax-exempt organizations. The following analysis summarizes the direct and indirect impacts the Act has on both the not-for-profit and colleges and universities sectors. broad-reaching tax reform legislation since 1986 in December 2017. Not

Tax Reform Changes for All Tax-Exempt Organizations Impact on Contributions/Fundraising Strategies One of the most publicized elements of the Tax Cuts and Jobs Act is the impact on charitable giving. The effect of increased individual standard deductions and decreasing tax rates to the not-for-profit industry remains to be seen. With an increased number of taxpayers expected to utilize the standard deduction in 2018 and future years, the tax incentives to donate to not-for-profits could be impacted negatively. The Urban-Brookings Tax Policy Center (Tax Policy Center) has stated that

34 Tax Law Impact to the Not-For-Profit and Colleges and Universities Sectors