Total charitable giving to support the work of nonprofits dropped 10.5% last year, compared to 2021 (when adjusted for inflation), according to a report from Giving USA. Giving by individuals alone fell by 13.4%.
There may be a variety of explanations for the drop, but two of the biggest? The economy and the Tax Cuts and Jobs Act. As the economy has slowed, folks may be feeling less generous. And, under the TCJA, the standard deduction for individuals nearly doubled (it will increase to $14,600 for individuals and married couples filing separately in 2024, representing an increase of $750 from 2023, while the deduction for married couples filing jointly will see a deduction of $29,200, a boost of $1,500 from 2023, and heads of household will see a jump to $21,900 for heads of household, an increase of $1,100 from 2023). With those numbers, fewer taxpayers are itemizing—and you must itemize your deductions on Schedule A to claim a charitable deduction.
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