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Arts Action News March 2018

The Arts Drive Our Economy

Vol. I 2018 Quarterly Member Newsletter Congress Tax Reform Could Negatively Impact Charities In a series of fast-moving, last-minute negotiations by a handful of Republican legislators, Congress passed an extensive tax reform bill on December 19, 2017, along party-line votes. The final bill received no Democratic support.

This sweeping legislation now brings substantial changes that could impact the health of the nonprofit sector. Although some harmful provisions were successfully defeated (like proposals to tax college tuition waivers received by graduate students), the biggest concern is the indirect impact on future charitable giving that will take place. As a result of Congress doubling the standard deduction, millions of middle class households will no longer itemize their expenses on a Schedule A to their tax return. This is important because the only place you can claim tax deductions for gifts made to charity is on this itemized form. The charitable community

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