Reporting Steve Tawa
By Steve Tawa
PHILADELPHIA (CBS) – Local charities are among the interested observers watching the year-end ‘fiscal cliff’ scenario play out in Washington.
Donors may be trying to beat tax code changes by accelerating their charitable giving now.
Executive Director Sydney Hargro of the Haddonfield-based Community Foundation of South Jersey says they’re getting calls from donors who are moving up their timetable.
“If they know that they’re planning a significant level of contributions next year, but they’re uncertain about exactly the organization that they’ll be giving it to, they can get maximum tax benefits now.”
Fiscal cliff talks include potential caps on itemized tax deductions, including non-profit donations.
Hargro says by parking money in donor-advised funds, clients can take an immediate tax deduction and then, take their time deciding where their gifts should go later, in 2013 and beyond.
But any short-term gain may result in long-term pain for non-profits.
“It could very well dry up in 2013 if those tax benefits are reduced.”