Tax Reform and Charitable Giving

 

With the new tax bill signed into law, you may be wondering how the new law could affect your charitable giving. The Office of University Advancement has compiled a brief summary of provisions related to these changes, which take effect in the 2018 tax year.

The previous tax code still applies for 2017 tax returns.

For more information, please contact our Executive Director of Gift and Estate Planning, Steve Grourke at 610-519-3587 or stephen.grourke@villanova.edu.

The information below is not intended to be legal, accounting or professional advice. Villanova encourages its donors to engage the services of an appropriate professional advisor when planning a charitable gift with tax and/or other financial implications.  
 

Tax Reform Summary 
 

The new law reduces the tax rate across all seven brackets, with a top rate of 37 percent instead of the current 39.6 percent.  

The new tax law doubles the standard deduction—$12,000 for individuals (up from $6,350) and $24,000 for married couples (up from $12,700).

The new tax law doubles the estate tax exclusion—from $5.49 million to $11.2 million for individuals, and from $10.98 million to $22.4 million for married couples.

Under the previous tax code, tax payers could deduct up to 80 percent of contributions made for capital seat fees or ticket premiums. Under the new tax law, this deduction has been eliminated, starting with the 2018 tax year.

The previous deduction still applies for gifts made during the 2017 calendar year, for 2017 tax returns.

Please note that donor advised funds, private foundations, matching gift programs and qualified IRA Charitable Rollovers are ineligible forms of payments when paying for a capital gift, season ticket premiums and season tickets.

The new tax law increases the adjusted gross income (AGI) limitation on charitable gifts of cash to public charities from 50 percent of AGI to 60 percent of AGI. The AGI limitation on charitable gifts of appreciated securities remains 30 percent of AGI. Donors who itemize will continue to be able to carry forward deductions subject to either limitation for up to five years.

The new tax law reduces the corporate income tax rate from 35 percent to 21 percent.

Updated: January 1, 2018

Matching Gifts

Many employers sponsor matching gift programs and will match any charitable contributions made by their employees.

If your company is eligible, request a matching gift form from your employer, and send it completed and signed with your gift. We will do the rest. The impact of your gift to our school may be doubled or possibly tripled! Some companies match gifts made by retirees and/or spouses.