New Tax Laws May Mean Tough Times Ahead for Charitable Giving â€“ Here's Why
- New studies estimate charities
and non-profits such as churches
will see big drops in donations in 2019.
The National Council of Nonprofits
in Washington, D.C. says the drop
in charitable giving could be as much as
20 billion dollars nationwide.
What's the reason?
New tax laws are affecting nonprofits
across the country.
Experts say more people will take
the standard deductionas opposed to itemizing.
Dan Celia, who leads FinancialIssues Stewardship Ministry,
says that the reason we may see
these changes is because people's motive
He spoke recently with CBN's
Heather Sells about it.
- Why will these new tax laws have such
a strong effect on giving and donations
- Well, I think they're gonna have
an effect on nonprofits, Heather,
as it points out in the study,
because there's a lot of people
that don't give for the same conviction
that you and I might give to our church
and you know, they'regiving for tax reasons.
Well, if they get those tax reasons,
those tax issues satisfied by getting
a much larger standard deduction
then it's not reallygonna be worth their while
to go through and itemize their taxes
like they normally would including
all those charitable contributions.
The end result's gonna be very close
to being the same.
- Same tax incentive there.
What is your advice to nonprofits then,
to those ministriesthat depend on donations
to encourage giving at the same levels
they've been enjoying?
- Well, I think the best advice
I could give to those ministries
is to encourage and remind their donors of
the mission and help them understand
that you are giving notfor a tax deduction,
I hope, but you're giving either
as part of your commitmentto the kingdom work
that those ministries are doing.
I think the nonprofits along the lines of
Red Cross and some other,not that their not doing
a great work, but they mightstruggle a little bit more,
so the best thing thatthe ministries can do is
continually remind peopleof what their gift is
being used, why they aregiving, and help raise
awareness that we are giving from
a faith-based standpoint,because of the kingdom work
that a particular ministry is doing,
not for a tax benefit.
The tax benefit is nice, but that's not
why we give, I hope.
So, we just have about 30 seconds,
but I wanna ask you, a lot of people are
struggling with debt this time of year
after spending all thatmoney on Christmas presents.
What advice do you have for people
who are struggling with their finances
at the beginning of the year?
- Right now, be sold out committed
that this is the yearthat you're gonna start
All through scripture we hear,
"little by little."
Little by little wealth grows.
Little by little, wepeck away at our debt.
Just a little bit more extra to
the principle of that debtand be committed to it,
maybe even sacrificing a few things
is gonna go a long way to getting rid of
that debt and then staying away from it,
that's another story.
Alright, well Dan Celiawith Financial Issues
Thank you so much for your time.