Tax reform bill could limit donations to non-profits

Tax reform bill could limit donations to non-profits

MYRTLE BEACH, SC (WMBF) - The latest tax reform bill President Trump signed on Friday could shift how the public looks at donating to their local non-profits.

"The majority of the great things we do here are from our donations from our supporters," Suzanne Roman, executive director of the Grand Strand Humane Society, said.

For food, equipment, and shelter, it's what Roman and the team rely on to operate efficiently. The tax bill the president signed into law on Friday could shift the number of taxpayers who apply for donation write-offs.

"It's obviously upsetting," Roman said.

An Indiana University study predicts donations will decrease by $13 billion, most of that coming from the middle class and creating an even bigger loss for the Humane Society.
"About 75 percent of the money that we need to run the show and do the things we do comes from our supporters and donations, so for us, it would be a very large loss," Roman said

The number of Americans eligible for the charity deduction are expected to drop in 2018, from 30 percent to as low as 5 percent. The tax bill has twice the standard deduction and puts a cap on the value of other deductions, like for state and local taxes.

Back at the shelter, Roman is hoping for the best.

"Many of our supporters are middle class people who just want to help," she said.

Charities could also face uncertainty even after next year. Some donors may be unaware of the pending tax code changes and continue to give money only to find out they'll be paying more in taxes in 2019.

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