Nonprofits are beginning to plan for their year-end giving campaigns, and a looming question is: whether federal tax changes will impact their total giving this year. The best answer to this question is we don’t know and will most likely will not know the true impact for years.
However, Minnesota nonprofits and donors received positive news in early September. The Department of Revenue announced that taxpayers filing their 2018 state income tax returns will be able to continue itemizing their charitable gifts even if they are taking the standard deduction at the federal level.
How can organizations be thinking about these federal and state tax changes related to charitable giving? We offer three takeaways. (Hint: they shouldn’t be too surprising!)
- Relationships are vital. This is not shocking or new to nonprofit organizations. People support nonprofits because they believe in the mission of the organization not only because of a tax incentive. Continue building relationships with donors.
- Know the basics. Nonprofits should have a general understanding of what’s happening related to tax incentives for charitable giving. It’s not necessary to know the details or even communicate these changes to your donors unless asked.
- MCN continues to work for you. MCN’s public policy team advocates for charitable giving tax incentives that encourage more giving by all Minnesotans. To stay updated and receive action alerts, sign up to receive the Nonprofit Advocate.
If you have questions, please contact Kari Aanestad, MCN development manager, at email@example.com.