A Win for Philanthropy on Capitol Hill
On Friday, December 18, Congress passed the Protecting Americans from Tax Hikes Act (PATH Act), making three key charitable giving tax incentives permanent. Averill applauds this act to support not-for-profit work and encourage philanthropy across the U.S.
3 Permanent Charitable Tax Incentives
- IRA Charitable Rollover. Anyone over the age of 70 ½ can give up to $100,000 from their IRA to a charity of choice, and avoid these funds being taxed as income. Gifts must be made by December 31 to qualify for that calendar year.
- Deduction for qualifying food inventory donations. The bill helps small businesses, farmers, restaurants and food manufactures to give food donations to not-for-profit organizations dedicated to feeding the hungry and homebound.
- Deduction for donations of land for conservation purposes. Gifts of land from corporations, individuals and farmers qualify.
Congress has renewed these incentives annually in years past, leading to uncertainty among fundraisers. More than $140,000,000 was given to not-for-profits across the country in the first two years the IRA Charitable Rollover deduction went into effect. A move to make this provision and others permanent helps to enhance fundraising strategies for not-for-profits, without the long-anticipated wait for last-minute decisions.