Joint Ventures Involving Tax-Exempt Organizations, 4th Edition

CHAPTER 2Taxation of Charitable Organizations

1. § 2.1 Introduction
2. § 2.2 Categories of Exempt Organizations (Revised)
3. § 2.3 § 501(c)(3) Organizations: Statutory Requirements (Revised)
4. § 2.4 Charitable Organizations: General Requirements
5. § 2.6 Application for Exemption (Revised)
6. § 2.7 Governance
7. § 2.8 Form 990: Reporting and Disclosure Requirements (Revised)
8. § 2.10 The IRS Audit (Revised)
9. § 2.11 Charitable Contributions (Revised)

§ 2.1 INTRODUCTION

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In the 2017 Tax Act (Pub. L. No. 115-97) (the “Tax Act”), the following changes affect tax-exempt organizations:

1. New 2017 Legislation
   1. Charitable contributions are likely to decline as a result of the lowering of the individual income tax brackets (a maximum rate of 37 percent) while doubling the standard deduction. These rates and the standard deduction sunset after December 31, 2025. It is projected that only 5 percent of taxpayers will have sufficient itemized deductions that exceed the standard deduction that will enable them to continue to claim a charitable contribution deduction, which may curtail charitable giving. Moreover, the estate tax exemption was doubled so that individuals now have $11 million of exemption and married couples are able to exclude $22.4 million from their estate tax. This provision also sunsets after December 31, 2025. ...