In light of recent developments in Congress, Philanthropy West Virginia is providing updates to our members on the policy proposals impacting charitable giving for nonprofits and foundation grant making. Current proposals before the IRS implementing the recent Tax Reform changes might impact your nonprofit or community foundations. In particular, the most pressing at this point is related to the limit on federal tax deduction for state charitable giving tax credits. Philanthropy WV has provided this resource in navigating this matter for our community foundation members:
- Limit on a federal tax deduction for state charitable tax credits- For individuals that receive a tax credit for a charitable contribution, the IRS has released proposed regulation changes that would possibly impact the amount deductible on the taxpayer’s federal income taxes. This would include the federal deduction of a donation must be reduced by the amount of the state or local tax credit received. This could apply to individuals who receive a West Virginia NIP tax credit and itemized their deductions on their federal income taxes. The new rule applies to all charitable deductions made after August 27, 2018 if the taxpayer receives or expects to receive a state or local tax credit. (IRS Proposed Regulation on Federal Registry)
Check out resources providing full summaries and updated information on the proposals in Congress below:
- To understand how to navigate the new IRS Proposed Regulations impact the West Virginia NIP Tax Credit Program (Click here)
We invite our members to contact the West Virginia’s congressional delegation in the U.S. House (clicking here) and U.S. Senate (clicking here) with your concerns on the IRS proposed regulation changes.
Philanthropy WV’s statement on the Universal Charitable Deduction can be reviewed and shared by CLICKING HERE!
For talking points to contact WV’s U.S. Senators and your House of Representatives’ member, CLICK HERE!
(Private foundations: Please refer to this COF statement on the self-defense exception allowing lobbying for the universal charitable deduction but note that you can’t encourage your grantees or others to do so.)
PAST PRIORITY ISSUES
Philanthropy West Virginia is working to communicate the importance of preserving the charitable deduction for West Virginia’s nonprofit organizations and foundations especially for the citizens and communities that we collectively serve. Included below are copies of sample letters/emails to write your members of Congress, Philanthropy West Virginia WV Charitable Giving Report, and additional resources for you to share the importance of the charitable deduction with our members of Congress. Please check this webpage for updates for upcoming meetings, teleconferences, and call to action alerts.
– CLICK HERE for a Sample Letter/Email to Write Your Member of Congress
– CLICK HERE for Philanthropy WV’s Charitable Giving in West Virginia Report
– CLICK HERE for the Charitable Giving Coalition’s Frequently Asked Questions Sheet
– CLICK HERE for the contact information for West Virginia’s Congressional Delegation
– CLICK HERE for the Notes from the 12-18-2012 Philanthropy WV & WVNPA hosted Teleconference on the Charitable Deduction
– CLICK HERE for Statement from Council on Foundations’ for Private Foundation participation on Charitable Deduction discussions
Among the goals in Philanthropy West Virginia Leading: Philanthropy WV members are served by our leading and collective voice. To advance this goal, Philanthropy WV works to:
- Cultivate relationships with stakeholders in state and federal government to provide decision making expertise and be a “go to” resource of policy makers
- Serve as the collective voice for our members that educates and advocates on the local, state and federal levels for initiatives, programs, policy, legislation, etc that advances the philanthropic sector in West Virginia
Back in 2012, Philanthropy West Virginia started to undertake policy engagement more actively than in the past. Our Board of Directors has determined that, in selected instances, Philanthropy WV’s members and the broader nonprofit community may be best served by taking a public position on a policy matter, including legislation or regulations proposed at the city, county, state or federal level. Philanthropy WV’s goal is to respond nimbly and flexibly when its involvement can help promote a vibrant and healthy philanthropic and nonprofit sector for the Mountain State.
As the statewide network that represents West Virginia’s philanthropic community, Philanthropy WV is actively working with our local, state, and federal government represents. This work is being done by our Public Policy Committee.