On Philanthropy: 6 ways the world of giving could change in 2018
When it comes to the world of philanthropy, 2018 promises to be transformational. Pessimists are concerned about the impact of new federal tax laws, the increase in income inequality and the growing need for critical social services. Optimists see more reason for hope, believing that we have entered the “golden age of giving.”
Watch for these trends in 2018:
“Trickle-down philanthropy” not likely
“Trickle-down economics” is a theory in which reducing taxes on businesses and the wealthy is supposed to stimulate business investment in the short term, benefiting society at large in the long term. It is widely discredited. “Trickle-down philanthropy” is the similar notion that lower taxes for businesses and corporations will lead to more generous giving. It is even less likely.
The new federal income tax law doubles the standardized deduction – to $12,000 for single filers and $24,000 for those filing jointly. This will likely reduce the percentage of taxpayers who itemize deductions from the current 30 percent to only the wealthiest 5 percent. As a result, giving in 2018 could fall by $20 billion.
Photo courtesy of Sudipto Sarkar.