As the Senate grapples with tax legislation, here’s how the pending bill compares with the House-passed measure on key issues that affect the nonprofit world. For further background information, see a Chronicle article about what charities have been doing to influence the legislation and advocates’ last-minute push.
| HOUSE | SENATE | |
|---|---|---|
| Standard deduction | Doubles the standard deduction, which means fewer people will itemize and take advantage of the charitable deduction | Doubles the standard deduction |
| Estate tax | Doubles the exemption immediately; repeals the estate tax in 2024 | Doubles the exemption but keeps tax in place for estates of more than $11 million |
| Executive compensation | Places a 20 percent tax on compensation above $1 million for top 5 employees | Places a 20 percent tax on compensation above $1 million for top 5 employees |
| Charitable-deduction limits | Allows donors to deduct cash gifts of up to 60 percent of their adjusted gross income, up from the current limit of 50 percent | Allows donors to deduct cash gifts of up to 60 percent of their adjusted gross income, up from current limit of 50 percent |
| Donor-advised funds | Sponsoring organizations would have to report the average amount of grants made from accounts during the previous year and create a policy for inactive funds. | No provision |
| Foundation excise tax | Places a 1.4 percent excise tax on foundation investment gains. Current law provides for a 1 percent or 2 percent tax, depending on the foundation’s grant-making history. | No provision |
| University endowments | Places a 1.4 percent excise tax on the endowments of some large private universities | Places a 1.4 percent excise tax on the endowments of some large private universities. |
| Johnson Amendment | Nonprofits would be allowed to endorse and support political candidates and campaigns and still maintain their tax-exempt status. | No provision |
We're sorry. Something went wrong.
We are unable to fully display the content of this page.
The most likely cause of this is a content blocker on your computer or network.
Please allow access to our site, and then refresh this page. You may then be asked to log in, create an account if you don't already have one, or subscribe.
If you continue to experience issues, please contact us at 202-466-1032 or help@chronicle.com