Open Forum

Hello Development people,
Rather than stating, "your entire donation is tax deductible" when an soliciting an unrestricted donation, what message will you be using in 2018?
Thanks
Beth Smith
Executive Director
Visions Art Museum: Contemporary Quilts + Textiles
visionsartmuseum.org

Hi Beth,

Forgive me if I'm misunderstanding your question, but I think you're asking if a gift will still be deductible in spite of the new ceiling on standard deductions. The gift itself won't have its taxable status changed; however, many people will no longer itemize their taxes, and smaller gifts will no longer impact the amount of their overall deduction. That being said, nothing will change from our end in terms of reporting and acknowledging gifts. We'll continue stating "your gift is tax deductible to the fullest extent allowed by law," and let the individual's tax preparer take it from there.

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Robin Sarratt
Vice President
LancasterHistory.org
Lancaster PA
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Original Message:
Sent: 02-01-2018 01:31 PM
From: Beth Smith
Subject: how to explain the new tax law to donors

Hello Development people,
Rather than stating, "your entire donation is tax deductible" when an soliciting an unrestricted donation, what message will you be using in 2018?
Thanks
Beth Smith
Executive Director
Visions Art Museum: Contemporary Quilts + Textiles
visionsartmuseum.org

​Robin's language seems like a great way to go when informing donors about tax deductability. It's my understanding that the new tax law doesn't change the status of the gift per se, although it may affect the donor's ability to deduct it by making it less advantageous to itemize. Are others concerned about the affects of those changes on small donors?

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Elizabeth Stewart PhD
Director
Renton History Museum
Renton WA
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Original Message:
Sent: 02-02-2018 06:27 AM
From: Robin Sarratt
Subject: how to explain the new tax law to donors

Hi Beth,

Forgive me if I'm misunderstanding your question, but I think you're asking if a gift will still be deductible in spite of the new ceiling on standard deductions. The gift itself won't have its taxable status changed; however, many people will no longer itemize their taxes, and smaller gifts will no longer impact the amount of their overall deduction. That being said, nothing will change from our end in terms of reporting and acknowledging gifts. We'll continue stating "your gift is tax deductible to the fullest extent allowed by law," and let the individual's tax preparer take it from there.

------------------------------
Robin Sarratt
Vice President
LancasterHistory.org
Lancaster PA

Original Message:
Sent: 02-01-2018 01:31 PM
From: Beth Smith
Subject: how to explain the new tax law to donors

Hello Development people,
Rather than stating, "your entire donation is tax deductible" when an soliciting an unrestricted donation, what message will you be using in 2018?
Thanks
Beth Smith
Executive Director
Visions Art Museum: Contemporary Quilts + Textiles
visionsartmuseum.org

I also think that Robin's comments properly address just what we can reasonably tell donors about contributions. We are never supposed to be tax advisors even if we know many of the implications of the tax laws, any more than we would comment upon appraisals of gifts of property.

------------------------------
Bruce MacLeish
Curator Emeritus, Newport Restoration Foundation
Newport RI
------------------------------

Original Message:
Sent: 02-02-2018 06:27 AM
From: Robin Sarratt
Subject: how to explain the new tax law to donors

Hi Beth,

Forgive me if I'm misunderstanding your question, but I think you're asking if a gift will still be deductible in spite of the new ceiling on standard deductions. The gift itself won't have its taxable status changed; however, many people will no longer itemize their taxes, and smaller gifts will no longer impact the amount of their overall deduction. That being said, nothing will change from our end in terms of reporting and acknowledging gifts. We'll continue stating "your gift is tax deductible to the fullest extent allowed by law," and let the individual's tax preparer take it from there.

------------------------------
Robin Sarratt
Vice President
LancasterHistory.org
Lancaster PA

Original Message:
Sent: 02-01-2018 01:31 PM
From: Beth Smith
Subject: how to explain the new tax law to donors

Hello Development people,
Rather than stating, "your entire donation is tax deductible" when an soliciting an unrestricted donation, what message will you be using in 2018?
Thanks
Beth Smith
Executive Director
Visions Art Museum: Contemporary Quilts + Textiles
visionsartmuseum.org

Here is a brief article we wrote about potential responses to donors' new tax environment: Tax Reform Insights

 At the bottom of the article, you'll find links to a number of other studies and white papers. And if your museum has an active legacy society/planned giving program, the Sharpe Group has a good white paper on giving after tax reform. 

Benefactor Group		remove preview
Tax Reform Insights As the Tax Cuts and Jobs Act became law in December 2017, many of our colleagues have provided excellent analysis of the potential impact on the nonprofit sector. We've provided links to some of our top picks below. Today, we're thinking about the steps that nonprofit organizations can take to prepare for the impact of the new law. View this on Benefactor Group >

.

------------------------------
Laura MacDonald
President
Benefactor Group, LLC
Columbus OH
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Original Message:
Sent: 02-01-2018 01:31 PM
From: Beth Smith
Subject: how to explain the new tax law to donors

Hello Development people,
Rather than stating, "your entire donation is tax deductible" when an soliciting an unrestricted donation, what message will you be using in 2018?
Thanks
Beth Smith
Executive Director
Visions Art Museum: Contemporary Quilts + Textiles
visionsartmuseum.org