The Internal Revenue Service announced the tax year 2022 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2021-45 provides details about these annual adjustments. The following table provides some important federal tax information for 2022, as compared with 2021. Some of the dollar amounts are unchanged and some changed only slightly due to inflation. * ... more
Charitable Giving
Accounting for Forgivable Loans and Other Revenue
With recent passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, 501(c)3 non-profit organizations and 501(c)19 veterans organizations with 500 or fewer employees (or that meet SBA size industry standards) can apply for emergency relief. Part of that relief comes in the form of potentially forgivable loans through the U.S. Small Business Administration. In our last blog post on revenue recognition, we talked about how to ... more
Charitable Giving Planning Through Automated Giving Programs
Automated giving programs are on the rise as a convenient way to boost monthly charitable nonprofit revenues. Sometimes called recurring givers, donors who choose this method can give the same amount at regular intervals, usually through credit card transfers or automated account deductions. Here are some strategies to create or increase monthly automated giving programs. But first, consider the additional work required: Educate your team and ... more
Tax Planning: Are Bundled Gifts One Answer for Donors?
According to a recent article in Forbes by sponsored content provider, Forbes Nonprofit Council, financial advisors are having their clients consider bundled gifts to their favorite charities or donor-advised funds every few years rather than annually. The idea is that a more substantial amount given every three to five years will cause their itemized deduction amount to rise above the new higher standard deduction level established with the Tax ... more
Fewer Charitable Giving Deductions, or More, in 2018?
By doubling the standard deduction for the 2018 tax year and going forward, the law known as the Tax Cuts and Jobs Act of 2017 may potentially reduce the number of U.S. taxpayers itemizing deductions by 25%. That means no specific deduction for charitable giving except among about 5% of the U.S. population. Nonprofits worry that the changes to how many Americans file their taxes could also reduce charitable giving. Since individuals will no ... more