Charities argued against doubling the standard deduction, but so far the change hasn’t slowed down giving. Above, President Donald Trump, flanked by Republican lawmakers, celebrates the 2017 tax law. (Chip Somodevilla/Getty Images)
Year-end holiday giving is make-or-break time for America’s charitable sector. Donors who give now may feel compelled by the spirit of the season, but many of them also know that they can soon write off their gifts on their taxes and recoup a portion of their money.
But that latter incentive affects fewer people this year, thanks to a provision in the 2017 tax law that roughly doubled the standard deduction. As a result, the Congressional Budget Office projects that 31 million fewer households will itemize their taxes next year, eliminating their tax incentive to give to charity.