Many people love to donate to nonprofits and charities because not only can you support your favorite cause, you get a deduction on your taxes which can be helpful to many Oregonians. But with Trump’s new tax plan, instead of an unlimited deduction, individuals will only be able to deduct $12,000 and married couples will only be able to deduct $24,000. This is bad news for nonprofits that depend on donations to run because this could mean not as many donations for them. Donations, that are crucial for nonprofits to run and do good for others.
Frank Magdlen is a Board Member and Treasurer for the North Clackamas Education Foundation. The North Clackamas Education Foundation was founded 28 years ago and helps teachers and students in the North Clackamas School District. For example, they provide grants to teachers who wish to do something special in their classroom and scholarships for graduating students. “Teachers can get up to $1000 for a class project they want to do,” started Frank “Other things include scholarships for people who are graduating high school and going to college.” The NC Education Foundation has many fundraisers throughout the year to raise money. “We have an annual dinner auction, we have the ability for online giving, we have an annual appeal letter.” If donations were to decrease this year due to the new tax plan, Frank Magdlen states, “We would make it publicly known that we are not making the same amount of donations.” Less donations would be unfortunate for the non-profit because “There isn’t going to be enough money to go around if we get impacted that way.” Frank Magdlen isn’t to worried about the new tax plan because “People still see a need for the activities provided by nonprofits.” hypothesized Frank. “People donate to causes they are passionate about.” and “I think they are motivated because they support the cause. They see the need and if the nonprofit does its job right, they will see a positive result from their donation.”
Sherri Magdlen is the Regional Director for Search and Rescue. “There is no one in search and rescue that is in a paid position.” started Sherri, “They just do it for the love of doing it.” and “They are on call 24/7” Sherri is also not to worried about this new tax plan affecting her non-profit because “It’s about saving lives, people support that.” and “I have a pretty good base I have gotten over the years.” Sherri works hard to keep donors up to date on what their money is being used for because “Maintaining these connections with donors is huge.” “We rely heavily on donations and grants and we are finding that over the years there has been a lot more competition to receive grants.”
If the changes to the tax plan did negatively affect nonprofits, the outcomes could be devastating for charities. But as everyone is still trying to process and understand just what the new tax plan is, many do not seem to be to worried because they know they can count on the support of donors to keep giving donations because they support the cause.
To learn more about and/or donate to the North Clackamas Education Foundation go to http://www.nc-foundation.org