Charitable donations struggle after tax reform

7 months 2 days 14 hours ago Tuesday, December 03 2019 Dec 3, 2019 Tuesday, December 03, 2019 7:53:00 PM CST December 03, 2019 in News
By: Caroline Dade, KOMU 8 Reporter

COLUMBIA - CoMoGives passed $100,000 of donations Tuesday on the third day of the month-long fundraising campaign for nonprofits in mid-Missouri. 

But for the man who started the campaign seven years ago, it’s not all a celebration. John Baker is the executive director of Community Foundation for Central Missouri, the organization that runs CoMoGives. 

He said the Tax Cuts and Jobs Act, a tax reform bill that went into effect in January 2018, has suppressed small and medium-sized charitable donations. 

“Last year the campaign officially collected $805,000,” he said. “In my heart of hearts, I think we should have received $850,000 based on past years’ performances, and I think part of the reason was the 2017 tax reform act because the donations we receive are the type that have been somewhat suppressed because of the tax reform.”

One of the main changes of the tax reform bill was to increase the standard deduction. This is the amount of income that isn’t taxed.

For a married couple, the deduction used to be $13,000. Under the new law, it’s now $24,000. 

Taxpayers have two options: take the standard deduction or itemize their expenses. If the total of itemized claims is higher than the deduction, that’s the amount of income that isn’t taxed. 

Because the standard deduction is now higher, fewer households have itemized expenses that are greater than the deduction. This means more people are taking the standard deduction, which Baker said reduces the incentive to donate to nonprofits. 

Nationwide, charitable donations were down 1.7 percent last year, according to the IRS. Baker said when he broke that number down, small and moderately-sized donations decreased by $20 billion. Large donations by a smaller number of people made up the difference.

However, not all donors have given up giving to charity. 

Elizabeth Hammel said she still donates because she recognizes some people in the community have not been as fortunate as she has. 

“I mean, you’ve got everything, you know,” she said. “You’ve got food, you’ve got a car, you’ve got a house. And there’s a lot of people out there who don’t have that. I always try to teach my kid that, if you can afford it, a dollar here, a dollar there never hurts, and you wouldn’t believe how many people it makes happy.”

Baker said small donations like Hammel’s are crucial for local nonprofits. 

“It’s the modest to small donor that is the heartbeat of many nonprofit organizations and the gifts that they depend on every single year.” 

CoMoGives runs through December 31, 2019. The goal is to raise $900,000 for 138 nonprofits in Columbia, Jefferson City and Boonville. 



More News

Grid
List
As COVID-19 continues to spread, KOMU 8 will continue to update you about impacts in the community. You can... More >>
1 hour ago Monday, July 06 2020 Jul 6, 2020 Monday, July 06, 2020 11:02:00 AM CDT July 06, 2020 in News
(CNN) -- Around 30 years ago, a town in Oregon retrofitted an old van, staffed it with young medics and... More >>
1 hour ago Monday, July 06 2020 Jul 6, 2020 Monday, July 06, 2020 10:49:19 AM CDT July 06, 2020 in News
COLUMBIA- The Columbia City Council is set to vote on a face mask order at their meeting Monday. The... More >>
6 hours ago Monday, July 06 2020 Jul 6, 2020 Monday, July 06, 2020 6:21:00 AM CDT July 06, 2020 in News
COLUMBIA - Several community members talked about the need to hold each other along with leaders accountable following a double... More >>
17 hours ago Sunday, July 05 2020 Jul 5, 2020 Sunday, July 05, 2020 7:31:00 PM CDT July 05, 2020 in News
As COVID-19 continues to spread, KOMU 8 will continue to update you about impacts in the community. You can... More >>
18 hours ago Sunday, July 05 2020 Jul 5, 2020 Sunday, July 05, 2020 6:09:26 PM CDT July 05, 2020 in News
MARIES COUNTY - The Maries County Sheriff's Office recovered human remains near the Gasconade River on Sunday, according to a... More >>
19 hours ago Sunday, July 05 2020 Jul 5, 2020 Sunday, July 05, 2020 5:26:00 PM CDT July 05, 2020 in News
MOBERLY - Movie lovers have something to be excited about: some theaters are starting to reopen. The B&B Moberly... More >>
20 hours ago Sunday, July 05 2020 Jul 5, 2020 Sunday, July 05, 2020 4:34:00 PM CDT July 05, 2020 in News
CAMDEN COUNTY — A one year old boy was killed at about 9:50 a.m. July 4 after being hit by... More >>
23 hours ago Sunday, July 05 2020 Jul 5, 2020 Sunday, July 05, 2020 1:37:00 PM CDT July 05, 2020 in News
COLUMBIA — The Columbia Public School District released plans for reopening in the fall and said on June 22 that... More >>
23 hours ago Sunday, July 05 2020 Jul 5, 2020 Sunday, July 05, 2020 1:00:00 PM CDT July 05, 2020 in News
COLUMBIA — UPDATE: In a press conference on Sunday, Columbia Police Chief Geoff Jones provided details on an overnight shooting... More >>
1 day ago Sunday, July 05 2020 Jul 5, 2020 Sunday, July 05, 2020 10:57:00 AM CDT July 05, 2020 in News
KANSAS CITY, Mo. (AP) — The Missouri Democratic Party’s chairwoman is stepping aside until at least September. The Kansas... More >>
1 day ago Saturday, July 04 2020 Jul 4, 2020 Saturday, July 04, 2020 6:22:27 PM CDT July 04, 2020 in News
KANSAS CITY, Mo. (AP) — The Jackson County, Missouri, prosecutor says two brothers have been charged with second-degree murder and... More >>
1 day ago Saturday, July 04 2020 Jul 4, 2020 Saturday, July 04, 2020 4:29:38 PM CDT July 04, 2020 in News
COLUMBIA - The Fourth of July is a day which commemorates freedom. But this year’s holiday follows weeks of... More >>
1 day ago Saturday, July 04 2020 Jul 4, 2020 Saturday, July 04, 2020 3:45:00 PM CDT July 04, 2020 in News
COLUMBIA - A rally was held at the Boone County Courthouse Saturday morning in an effort to show support for... More >>
1 day ago Saturday, July 04 2020 Jul 4, 2020 Saturday, July 04, 2020 3:23:00 PM CDT July 04, 2020 in News
As COVID-19 continues to spread, KOMU 8 will continue to update you about impacts in the community. You can... More >>
2 days ago Saturday, July 04 2020 Jul 4, 2020 Saturday, July 04, 2020 10:12:00 AM CDT July 04, 2020 in News
COLUMBIA —As mid-Missouri experiences a rise in coronavirus cases, the Health Department is struggling to keep up with contact tracing.... More >>
2 days ago Friday, July 03 2020 Jul 3, 2020 Friday, July 03, 2020 6:51:53 PM CDT July 03, 2020 in News
VIENNA — The Historical Society of Maries County is offering a $1,000 reward to anyone who can provide "substantial information"... More >>
2 days ago Friday, July 03 2020 Jul 3, 2020 Friday, July 03, 2020 6:32:32 PM CDT July 03, 2020 in News
COLUMBIA - Four bars within 24 hours may have been exposed to someone who had COVID-19. Boone County Health... More >>
2 days ago Friday, July 03 2020 Jul 3, 2020 Friday, July 03, 2020 6:29:00 PM CDT July 03, 2020 in News
Columbia, MO
Broken Clouds 86°
1pm 90°
2pm 89°
3pm 90°
4pm 89°