Tuesday, January 2, 2018

New Tax Law Could Have Serious Repercussions on Giving to Historical Organizations

As I do not particular enjoy people pushing their political ideas on me, I try to practice those sentiments by attempting to keep "My Random Thoughts" as apolitical as I possibly can. However, I received the below email message just before the turn of the new year from the Kentucky Historical Society. It clearly outlines some of the threats that the recently passed tax law could have on charitable giving to non-profit historical organizations and museums. 

Many organizations rely heavily on charitable giving to survive in a society that seems more and more interested in spending their disposable income on entertainment and other luxury items rather than education and learning. It is a sad fact. Historical organizations and museums still provide an important function in our lives and need to remain viable sources of information for all segments of the population. Please take the time to learn more about the new tax law and search out the best means for your individual situation to receive your charitable deduction and which also allows you to continue giving to the historical organization or museum of your choice. 

Happy New Year!  

An Important Message from the 

Dear Friend,

As a faithful supporter of the Kentucky Historical Society and an advocate for history’s relevance, we have urgent news. You likely have heard the U.S. Congress passed a new tax law. Among the major changes is that the standard deduction will double starting in 2018. 

Currently, many people who make charitable contributions find it beneficial to itemize on their federal tax returns. Under the new law, the charitable deduction remains. However, the change in the amount of the standard deduction will affect many donors who used to itemize their charitable deductions, as they may find it more beneficial to simply take the standard deduction and not itemize at all -- taking away an incentive for many to give.

This has serious implications for organizations such as ours. The Council on Foundations estimates the tax bill will drain anywhere from $16 billion to $24 billion a year from the nonprofit sector going forward.

Between the new federal tax law, the recent 5.36 percent state budget cut and the promise of even higher reductions in state funding for FY18-19, the Kentucky Historical Society will be affected in a real and visible way.

This is bad news. 

We are not exaggerating.

The good news is that we will persevere. We are committed to our mission to educate and engage the public through Kentucky history in order to confront the challenges of the future. Nonetheless, your support is more important now than ever. How we persevere will undoubtedly look different.

Please consider making a gift prior to the end of 2017 to the Kentucky Historical Society Foundation:
  • If you ordinarily give between January and June, may we suggest shifting your timing to now in order to receive a tax receipt for 2017?
  • If you have already given, would you consider making an additional gift?
  • If you are considering joining us as a new supporter, would you make a gift as a testament to your commitment to our mission?

In order to receive a receipt for your 2017 returns, you may give in any of the following ways: 
  • Online:  history.ky.gov/donate by 11:59 pm on 12/31
  • By texting KY1792 to 243725 by 11:59 on 12/31
  • Via mail: Make your check payable to the Kentucky Historical Society Foundation,
    PO Box 6856, Frankfort, KY 40602, postmarked by 12/31  
You also may contribute via stock transfer or a direct transfer through your IRA if you are 70 ½ or older.  Please consult your financial advisor by 12/29 for this method of giving, then contact kent.whitworth@ky.gov for details.

This is a serious time with serious implications for KHS. Thank you in advance for your support,

Executive Director, Kentucky Historical Society 
Secretary, Kentucky Historical Society Foundation

No comments:

Post a Comment