Donations to LGBTQ Organizations May Shrink Under New Tax Plan

| January 8, 2018

NBC News reports that nonprofit groups, including thousands of LGBTQ organizations, may lose billions as a result of Donald Trump’s tax overhaul if estimates by the National Council of Nonprofits are correct. Every year, Americans donate billions of dollars to charitable organizations and catch a break from the IRS in the form of a tax deduction. However, the new Republican tax law, which doubles the standard deduction, may reduce the economic incentives to donate.

Under the new tax law, taxpayers who take advantage of the increased standard deduction will no longer be able to take a deduction for their donations. Many LGBTQ groups are registered with the IRS as 501(c)(3) organizations, meaning donations to these nonprofits are tax deductible. And while the new bill raises concerns about the future of charitable giving, many LGBTQ groups since Trump’s election have reported noticeable increases in giving, especially from larger donors, which could offset losses.


U.S. President Donald Trump displays his signature after signing the $1.5 trillion tax overhaul plan in the Oval Office of the White House in Washington, U.S., December 22, 2017. Jonathan Ernst / Reuters


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