Charitable donations struggle after tax reform

1 month 3 weeks 23 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
COLUMBIA - The CoMo Short Showcase highlights local filmmakers and their original work in the community. The goal is... More >>
1 hour ago Saturday, January 25 2020 Jan 25, 2020 Saturday, January 25, 2020 4:45:00 AM CST January 25, 2020 in News
COLUMBIA - A hearing has been set for Joseph Elledge on Feb. 3 at 3:00 p.m. at the Boone County... More >>
9 hours ago Friday, January 24 2020 Jan 24, 2020 Friday, January 24, 2020 8:02:00 PM CST January 24, 2020 in News
BOONVILLE – With the closing of Pinnacle Regional Hospital in Boonville, it will likely take longer for emergency officials to... More >>
10 hours ago Friday, January 24 2020 Jan 24, 2020 Friday, January 24, 2020 7:50:00 PM CST January 24, 2020 in News
BOONVILLE (AP) - Missouri is planning to cut more than 1,700 beds at prisons across the state. Department of... More >>
11 hours ago Friday, January 24 2020 Jan 24, 2020 Friday, January 24, 2020 6:47:00 PM CST January 24, 2020 in News
GUTHRIE TOWNSHIP - Deputies have one suspect in custody in a murder investigation. The Callaway County Sheriff's Office said there... More >>
12 hours ago Friday, January 24 2020 Jan 24, 2020 Friday, January 24, 2020 5:41:00 PM CST January 24, 2020 in News
COLUMBIA - Students avoided slick roads after the University of Missouri closed campus on Friday. The school alerted students... More >>
15 hours ago Friday, January 24 2020 Jan 24, 2020 Friday, January 24, 2020 2:07:00 PM CST January 24, 2020 in News
COLUMBIA - After a heavy snow fall Thursday night, Susan Stephenson received notifications that Columbia Public Schools would not be... More >>
16 hours ago Friday, January 24 2020 Jan 24, 2020 Friday, January 24, 2020 1:28:00 PM CST January 24, 2020 in News
COLUMBIA - The City of Columbia Public Works Street Division will start plowing and treating all city streets at 1... More >>
17 hours ago Friday, January 24 2020 Jan 24, 2020 Friday, January 24, 2020 12:08:00 PM CST January 24, 2020 in News
COLUMBIA - Boone Electric Cooperative is reporting outages affecting nearly 5,000 customers Friday morning. The outages are reported across... More >>
19 hours ago Friday, January 24 2020 Jan 24, 2020 Friday, January 24, 2020 10:22:00 AM CST January 24, 2020 in News
COLUMBIA - Officials with University of Missouri announced campus is closed Friday due to weather. The university earlier announced a... More >>
1 day ago Friday, January 24 2020 Jan 24, 2020 Friday, January 24, 2020 5:29:00 AM CST January 24, 2020 in News
BELLE - The Maries County Sheriff addressed concerned Belle residents Thursday after the town closed its police department earlier this... More >>
1 day ago Thursday, January 23 2020 Jan 23, 2020 Thursday, January 23, 2020 10:19:00 PM CST January 23, 2020 in News
MID-MISSOURI - A multi-day storm system continues in central Missouri, eventually coming to an end this evening with snow accumulation... More >>
1 day ago Thursday, January 23 2020 Jan 23, 2020 Thursday, January 23, 2020 7:07:00 PM CST January 23, 2020 in Weather
JEFFERSON CITY - After more than a year and a half of sitting empty, and with holes throughout, a Jefferson... More >>
1 day ago Thursday, January 23 2020 Jan 23, 2020 Thursday, January 23, 2020 6:16:00 PM CST January 23, 2020 in News
ASHLAND - Winter weather brings more than just frosty temperatures. It brings the unexpected. Especially when parents and grandparents are... More >>
1 day ago Thursday, January 23 2020 Jan 23, 2020 Thursday, January 23, 2020 5:06:00 PM CST January 23, 2020 in Top Stories
JEFFERSON CITY - This winter has brought above-average levels of snow and ice to mid-Missouri, and now, crews across the... More >>
1 day ago Thursday, January 23 2020 Jan 23, 2020 Thursday, January 23, 2020 4:18:00 PM CST January 23, 2020 in News
COLE COUNTY - Construction on Route 54 south of Jefferson City will begin on Monday, January 27. The project is... More >>
1 day ago Thursday, January 23 2020 Jan 23, 2020 Thursday, January 23, 2020 3:32:00 PM CST January 23, 2020 in News
COLUMBIA - The Columbia Police Department is asking for the public's help in identifying a man accused of assault. The... More >>
1 day ago Thursday, January 23 2020 Jan 23, 2020 Thursday, January 23, 2020 2:42:00 PM CST January 23, 2020 in News
A replat of property at the northwest corner of Cherry and Hitt streets to accommodate plans for a six-story... More >>
1 day ago Thursday, January 23 2020 Jan 23, 2020 Thursday, January 23, 2020 2:21:00 PM CST January 23, 2020 in News
Columbia, MO
Broken Clouds 31°
6am 30°
7am 30°
8am 30°
9am 31°