The year is almost at its end, which means tax season. Traditionally, this means the last few weeks to make a year-end donation for tax purposes, but the new tax code will mean some big changes.
Many families like to keep track of their charitable donations each year, using itemized deductions when filing their taxes.
Rebecca Krohn the executive director of Siouxland Community Foundation said, “Tax benefits are always important. If you’ve got a donor where a CPA says it would be great if you gave away this much, that’s a great way. And that’s a donor that’s going to be itemizing anyhow.”
The new tax code doubles the standard deduction. To itemize deductions, you must spend over $12,000.
Heather Hennings the president of United Way, explained, “Really, every person’s situation is different, and consulting your tax advisor is probably the best thing you can do to make sure that you can continue to support organizations that you really care about.”
When Congress first addressed these changes last year, many nonprofit organizations feared the tax changes might hinder donations. Hennings, however, said that United Way has not noticed a negative impact in giving. Many Siouxland organizations have found tax deductions are not the first priority for people who do give.
“Someone who is not itemizing on their taxes, they’re giving to that charity because they care about that organization, and they’re going to give whether they get tax relief or not,” said Krohn.
It proves that the spirit of giving is high within the Siouxland community.
“This is the time of year for giving and it’s important regardless of the taxes to continue to give back to the community.” Said Krohn