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New Tax Laws May Mean Tough Times Ahead for Charitable Giving – Here's Why

New Tax Laws May Mean Tough Times Ahead for Charitable Giving – Here's Why Read Transcript


- 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

is forgiving.

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

this year?

- 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.

- Right.

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

pecking away.

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.

- Right.

Alright, well Dan Celiawith Financial Issues

Stewardship Ministries.

Thank you so much for your time.

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