Posted by Idaho Youth Ranch on Nov 13, 2019 8:42:21 AM
Did you know that, in 2018, charitable giving decreased by roughly 6% in the first quarter compared to the same quarter the year before? Year-over-year data showed that new donors decreased by 12% as well. Why is this? Tax reform. A lot of people found themselves in a lower tax bracket, meaning their take-home pay increased, and their standard deduction was much more of a temptation than making itemized deductions.
Herein lies the problem: if people aren't itemizing their deductions, they're less likely to donate to charity because they don't get the credit for their donation. It's a sad reality that charities and nonprofits have experienced these last couple of years.
Maybe you recognize that you're included in this. You already know that you're not going to itemize your deductions for 2019. That's okay. Why? Because there are still other reasons to make a tax-deductible donation, and they have nothing to do with taxes.
Reason 1: Your Donations Still Make a Difference
Just because you don't see your donations make a difference on your taxes doesn't mean they're not making a difference. When you donate to Idaho Youth Ranch Thrift Stores, you're contributing to the futures of the youth of Idaho- and that means something. There are kids in your community that are helped by your donations. Whether you physically see it for yourself or not, your donations make a huge difference.
Reason 2: You Can Feel Good About Yourself
Psychologically, there is something that happens to you when you do something selfless. It's a good kind of pride. You've done something worth being proud of, and we need more of that in this world.
Reason 3: It Teaches Kindness to the Next Generation
Children are like sponges, soaking up information, and learning from the world around them - including you, their parent. Knowing this, why not do something selfless in front of them, or better yet, include them! Go through your closets together and see what they are willing to donate. They may surprise you.
Reason 4: You Can Learn Something New By Donating Your Time
Donating isn't just about giving of your things. It can be a donation of time, too! At Idaho Youth Ranch, we're always looking for volunteers. We can always use volunteers to fill roles such as:
- Admin Extraordinaire
- Antique and Vintage Pros
- Awesome Team Players to help at our thrift stores
- Creative Display Collaborators
- Group Volunteers
- and more!
Reason 5: You May Still Be Able to Get a Tax Benefit
The ability to claim tax benefits from donations hasn't gone away completely. Before the tax reform happened, you may have chosen not to max your tax-deductible contributions if you knew the overall limit meant you couldn't get full credit for them. Now you can do so if you choose.
Another benefit of the tax reform is that you can now deduct cash contributions of up to 60% of your adjusted gross income, whereas before, it was 50%.
To get a charitable donation deduction, you must file Form 1040 and itemize your deductions on Schedule A. This will allow you to lower your taxable income for donations or gifts to qualified, tax-exempt organizations such as Idaho Youth Ranch. We suggest talking with your dedicated tax specialist to learn more about which deductions you can get.
Looking to Make a Donation?
At Idaho Youth Ranch, we provide a few different ways that you can give. Learn more about these by visiting our Ways to Give page!
NOTE: This does not constitute tax advice. Questions about tax implications should be directed to your tax professional.
Written by Idaho Youth Ranch
Our Mission: We unite for Idaho’s youth by providing accessible programs and services that nurture hope, healing, and resilience.