Development professionals should be sure to review The Chronicle of Philanthropy’s helpful summary of how tax proposals being considered by Congress will affect donors.
For example, if the income-tax rate goes up for wealthy Americans, people who now pay 33 percent of their income in taxes would pay 36 percent, and those who now pay 35 percent would pay 39.6 percent. That means a donor who contributed $100,000 in 2010 would save $33,000 in taxes this year and $36,000 next year. So she might put off a gift now to get the extra $3,000 write-off next year.
Other tax proposals addressed are rising capital-gains rates, reduced charitable deductions, other limits on deductions, estate tax, and retirement accounts. For details, click here.