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Gene Takagi: New Tax Law & Your 2018 Plan
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Hello and welcome to tony martignetti non-cash over radio big non-profit ideas to the either in ninety five percent, i’m your athlete named oh, i’m glad you’re with me. You’d be speaking with a phony a if you lost the ability to tell me that you missed today’s show new tax law and you’re twenty eighteen plans, tax cuts and job back include using changes that in fact non-profits in fund-raising and beyond legal contributor and the principle of neo non-profit and exempt organizations law group gene takagi. He walked us through what you need to know. Authorities take you twenty eighteen plans all this month. Reported by pursuing full service fund-raising data driven and technology enables tony dahna i made last pursuing and by wagner citing you beyond the numbers piela dot com hello. Starting credit card processing your passive revenue stream. Tony dahna a blast. Tony. Hello. What a pleasure to welcome back scotty. For the new year. He is managing attorney of neo the non-profit and exempt organizations law group in san francisco. He edits the phenomenally popular non-profit law block dot com. And if the american bar association’s twenty sixteen outstanding non-profit lawyer at ease, happy. New year team happy new year, honey. Great to be back. The pleasure. Thank you for joining us in the month of january and talking about the monster new tax law and how it impacts non-profits twenty eighteen. Um, what? Just for the years of the details? What? What? What? What have you seen in terms of non-profits reaction community reaction to the fact? Well, i think monstrous wasn’t a bad term. Teo described from the perspective of non-profits i think overwhelmingly non-profits leaders who are kind of aware of all of the details provisions that may affect them think it’s a really terrible teo that’s blackbaud either, in some cases, a lack of understanding of what non-profits charities duitz for the country and in some cases, just think that there’s a lack of care, but sadly, it’s not a very good bill and non-profits me to be aware of what? What about them? Okay, uh, let me explain. Listen, if you were working on oddly rigged system, were going through my phone so there may be some delays. Naralo echoes so bear with us there. I want to get this done miles. Jean and i are in the studio. Are available. And you need to ask you if you could remember, speak up a little bit louder than usual. Okay, well, okay. Thanks very much. Um, yeah. Uh, you you believe the conventional and widespread with belief that most of his tax bill is benefiting the wealthy one percent or one tenth of one percent. Yeah, i’m kind of in line with that. That frame of thought that ultimately the richest one percent will end up with by far the majority of the benefits of the tax cuts. And i heard someone. You’re the richest one tenth of one percent are gonna benefit from about sixty percent of the benefits of the tax cut that comes from robert ray’s shut in an article published by newsweek overviewing week early in january. So this is going to be the expected by twenty, twenty seven. A lot of the benefits that cruise teo little income and even lower income individuals made this here. There’s some temporary, uh, deductions and carrots that are given out, if you will, to make it seem like they’re getting to benefit from it, at least initially. And then those disappear. And by the way and deficit get larger there’s going to be a spending cut which made the that’s the social security, medicare and medicaid. I believe the republican congress is there in talking about that let’s call ryan and decrease spending on a social safety nets will increase the needs. Of course, charitable services, the decrease spending from the government and the government supplies about one third of the revenues for charity, so they get their job done through charities by e-giving grass and contact public services that decreased spend spending will mean that charities have less money to address ever increasing metoo duitz a bad results all the way around. Remind me what we talked about in the depths of the recession. In that case, individual giving head declined because unemployment was so high and because unemployment was so high the need, especially in the social services sector, were vastly increasing. Exactly that’s the problem with doing the same thing is that the cause of it is the cause of the individual e-giving decline is, uh, anticipated decline is different. All right, so what do you think we see in terms of brovey fund-raising and how it’s going to be impact, by the way? The send out the increase in the standard deduction, talk us through that. So, sure, but one of the big provisions that that affects everybody is that going to be a doubling of the standard in-kind almost doubling of this from about sixty three hundred fifty dollars to twelve thousand dollars for individuals and double that for married couples. For some people, they would say, you know, we’re getting a bigger deductions, you always taken the standard deduction, and that will seem great, although that’s just temporary, but there are a lot of potential deductions that have gone away, and that maybe means that a lot of people will actually end up paying more in taxes and the impact specifically the charities is that by doubling the standard deduction roughly, you know, thirty percent of taxpayers were ableto itemize their deductions, and only ida miters itemizers would get the benefit of the charitable contribution instructions, because that is one of the itemized deductions that are allowed, but from thirty percent of tax cares itemizing deductions once you double the standard deduction, it will only mean that a thousand five to six percent of taxpayers will now itemize or get the benefits of speeding says the level of the standard deduction by itemizing so basically, what you’re saying now is from thirty percent of the population that could have benefitted tax wise from a charitable contribution deductions lax here this year and going forward because this is already it’s, not a bill anymore. This is the law’s going forward, only about five percent of taxpayers can actually get a deduction for charitable contributions that that is meaningful in any way, so that goes into the so the estimate is that only about five percent of taxpayers will itemize going forward. Yeah, i think it’s about five stick percent going forward is that you going to be subject to some of something that happened, including with state taxes and some states trying to react to all of this as well and creating different measures that’s really hard to really get it, just sort of based on on current conventions, the joint committee on taxation of everyone you know from from the federal government believes that it’s going to be about six percent, five percent of taxpayers that are going to itemize from now on, all right and that’s down from, he said. From thirty percent historical yeah, so i thinking rough numbers are in ron numbers. I think we’re going from about forty six million taxpayers who itemized in two thousand seventeen will go down to less than thirteen on dh that dejected to result in twelve to twenty billion dollars per year, less charitable giving a credible e-giving is tied in part tax benefits. Now a lot of people don’t have tax benefits is their main reasons for giving but it’s fundamentally expect how much leftover incomes have, yeah does play a part in some people’s decisionmaking twelve to twenty billion dollars per year, again from the joint committee on taxation, and they’re estimating that’s going to cost two hundred twenty thousand two hundred sixty four thousand non-profit jobs lost, so okay, zoho all right, i hate to break it there, but what? We need to, um, let’s, pick it up right where we are right now, we need to take a break record they’ve got another testimonials quote, this is my first year, and we are a growing non-profits weinger gps was completely attentive and gave the impression that they were right next door and handling our review engagement even. Though we’re in different states, they made me feel like we were the only client they had and they were able to walk me through starting up our accounts, finishing our yearly nothing was too small of a pastor than tto handle. There are always available for questions, concerns customer service was exceptional, which is a rarity these days and greatly appreciated. I receive great advice and guidance for better business practices from a professional a while, feeling supported and generally cared for in the process, grantmaking piela really stood out as a partner and supported and generally cared for you just don’t hear that from hey ready. You need to check him out. Magnus dot com that’s not for tony to back-up. Oh, no! That’s! That’s! That’s! Time to go back through. Sorry, jean. How are you? I’m doing great. Okay. Let’s, let’s, continue where we are from. Where? From where we are. All right. Those are some pretty dismal sounding numbers now. Okay. You mentioned that charitable are with charitable deductions. Is not there is a lot of evidence that that that’s not the main reason that lots of people give because they get a child abduction. It’s because of their love of the world, yeah, you know. And i think that’s going to be the main reason why people give but there’s the entire industries, including the plan e-giving industry, is, you know very well that that that really considered tax benefits is part of the equation, and it might not impact what who they did, too. But it might impact how much they give. Yeah, now i know it is. It is a factor you all through this in other other changes that have come in the twenty years since i’m doing playing e-giving. I’ve always just stayed with the belief that taxes aren’t the main motivation. Yeah, i agree. Not the main motivations that we’re not seeing a reduction of, you know, fifty per cent of charitable chiming in it’s going to be more expensive of single digit Numbers maybe 42:5 percent production is in charitable giving, but again, that amounts to twelve, twenty billion dollars per year around two hundred twenty thousand one hundred sixty four thousand jobs latto because of that and on top of it, only job friends, yes. And that’s that’s really? I haven’t heard that member. Yeah, heard the iter dollar nasco hadn’t heard the job. I’m sorry. I’m sorry. Go ahead. Yeah. So on top of that, we’ve got the other issues, you know, which is a kind e-giving issues well and that’s the state tax exemption durney so this affected very wealthy, but these state taxes being doubled up to eleven point two million dollars for an individual. And basically, this means that if you pass away and you have more than eleven twenty million dollars, you’ll have to take a very, very heavy a state tax to the government. Now it’s the limit before with half of that about five and a half million dollars to take, but now, going up to it’s doubling, which means again instead of e-giving charity people could give to their family members and said, and that may be a consideration for many of the wealthy were announced it’s going to be shielded by this this hyre state tax extension, and that again, is estimated to cost another four billion dollars for a year in charitable giving, so in percentage numbers of overall charitable e-giving again, we’re talking pretty small overall, but the impact of five percent let’s say e-giving reduction of percent translates to a lot of things that cherry’s can no longer. Yeah, now i hear you’re pounds let’s go back to that deduction. It sounds like this younger, sorry deduction increase the standard deduction increase. It sounds like this is going to be making potentially major donors maur important on more of a focused area than saying younger and, most likely, smaller donors. More modest owners who will no longer be able tio teo take the deduction claim the charitable deductions that but that made the donor’s become to the outside, even greater, even more selling in focus because they didn’t want to be more likely to be able to. Profit from the charitable deduction and which which you know, that charitable deductions reduces the cost of a gift because you’re getting your saving money in taxes, right? Precisely. And we’ve actually been seeing that trendy that even before these new laws and that they have to do with the widening income gap er, or wealth down that exists. So in two thousand fifteen, twenty four percent of taxpayers reported that they had made a charitable gift in their returns, according tto, not analysis of the irish state a decade earlier, so in two thousand five, that was thirty two, thirty one percent. There was already a reduction from thirty two, thirty one percent of taxpayers reporting charitable give twenty four percent reporting charitable give before this tax latto and basically it is because some of the lower middle income people just have less full income than they used to have, and they need to be needed to divide. And so this is going to be doing the same thing it’s not going to impact the wealthy so much unfavorably because they can still get higher than the standard deduction, not for low and middle income people, the increased defended. Deductions might seem like a good thing. They might be able to take more off than the use of the benefits will hooted. And there won’t be the value of making a charitable gift anymore. So the question will be is with that extra income will they make a charitable gift the middle income so our incomes or will they feel that this is unstable? Particularly because this is only a limited or temporary? A doubling of the standard deductions. You will go back to normal after a few years. So that’s that’s kind of the quest? Yeah, and historically, when charitable giving has it like it did in during the great recession. Andan tax laws, tax law changes before then it’s been like three years or so three to four years for charitable giving to ride back to the level it had game before the events that causes according to our country’s history of giving always does rebound. But there have been, like a four year, three, four years, so historically historically it has rebound. It’s that place out here too. Time you mentioned some changes to deductions. That’s good actually result in a loss for individuals, can you? Can you flush out a couple of those? Bilich well, i think what’s happening for for individuals. The idea was generally, the simplified says sort of deductions, but now interpreting it is actually gotten more complicated. So a couple of things is, is there’s no deductions anymore for state and local taxes on a limitation on the deduction for mortgages? First, individuals were coming from high state tax states like new york and california, jersey, massachusetts and connecticut, particularly those with high real estate values and hyre local and state taxes that the double ramming their right so they’re not going to get that deduction on the federal income tax insurance anymore, so if they were paying a lot in those taxes, are getting a big mortgage interest deduction because they have a high mortgage boy? Is that doubling the sanders defections? It may not be so it you know, that may not be enough to offset which may not be enough to offset what they’re losing. Yeah, now, now the mortgage interest deduction was cast right with ten thousand dollars. I’m not completely familiar with the i think what happens is it doesn’t no longer applied to kind of what we call the second mortgage, but it it implies the mortgage for which you purchased you’re home. And i believe lim wass and i’m trying to think it was mortgaged about five hundred thousand or a million dollars under the house from senate till they were slightly different. I’m not okay. That’s all right, all right. Wait. You still have that production, but its kapin its value has been reduced. Correct. Okay, okay. On oneaccord teo. Yes. Definitely going to impact homeowners with high mortgage is especially in new york and california teachers, right? Right. Okay. And also you’re point about state local factories no longer no longer deductible. And that hurt people. Pre-tax. Yeah, and the ten thousand dollars that you mentioned is actually the property tax deduction that you formally take. And that would be captain. Ten thousand starts before i was talking about the mortgage. Oh, i confused, too. All right. Thank you for keeping me straight. All right. I see. I complete things. Okay. Sorry about that. It’s complicated. Still hopes we understand. All right, but you know, it’s. Okay. Um other e-giving e-giving backto non-profits there’s. Been a change to the unrelated business income tax? Sure. So that’s that’s kind of. Ah, more what’s. A little simple to understand. So if you have unrelated business income and it’s taxable, and you’ve got one trader business that’s making a profit and it’s unrelated against those you’re supposed to take cubine or unrelated business income tax on it. But you had another trader business that’s also isolated, but that was that was incurring a lot. You used to be ableto officer of the law from one unrelated state of business against the profits of the possible i’m related. Yeah, that’s, good that’s what investors were allowed to do? They’re allowed to offset capital losses. The world turned their lives off capital gains capital losses, right? So that’s basically is what you’re doing here. Although it’s income rather than send your offsetting, you know, one one area business with another areas business because it’s the same taxi fare that we’re talking. But that’s no longer the case can wait. Put them in silos. So if you’ve got a game in one business that change, you know the taxes. If you have a lost another unrelated business, you might be ableto off that gains in another year from that business alone that was completed. Buy a load out. You’re different. Unrelated. Okay, on there are increasing numbers of non-profits who are engaged in activities that, you know, they they count on, uh, unrelated business thing comes, uh, all right, a lot of pressure on him now, especially with less charitable giving and lessons for charitable giving more non-profits they’re looking for a dink ventures, and some of that will be unrelated. We’re not talking about related income, so it’s, if the activity is related to further a year charitable purpose and you don’t wear the profits just if the activity itself, even if it made no money related, you’re terrible service don’t attack if you do happen to get a part, okay, i understand. Um oh, if you’re okay. So let’s talk about the attacks on endowments of colleges. Yes. So that’s that’s going to be an interesting one, but it only affect very few colleges. I think they’re only going to impact twenty seven colleges and universities. So this was after much haggling between the senate and houses and lobbyists, obviously different colleges and universities. Oh, one point four percent excise, but it is important because now our policy for tax exempt organizations with they should be paying taxes on their income and all. Of a sudden now we’re paying for your college and universities and big yeah, okay, you’re going to wait for it a reversal of an important principle, right? And i guess the danger is that this is a slippery slope i don’t hey, if we can, if we can do it with big colleges and universities, what about smaller colleges universities? What about the charity let’s? Attack them as well? It has been a trend in that on the state level, two of looking for property tax on dh things called highlights, which are krauz payments in lieu of taxes that states they’re trying to charge tax exempt organizations looking for more income from tax accents, and obviously, that that diminishes with charities content to be able to do because they’re gonna have less income because there’s enough today, those pilots are justified because the charitable entity is consuming services of the town but not paying nothing local property taxes, right? That’s the justification that that some room that they again with very well right now they’re frauds get say, well, even if they’re not using the service. Finally, finally, if i were defective, buy-in altum uh, unfortunately, you’ve got another new excise tax. Also, talk about yes, there is there is there enough number of excise taxes, but one that again applies to stake non-profits is on excise tax on compensation of more than one million dollars. Uh, which only a prize. You’re five highest employees and doctors and medical professionals sort of exempted from this, but it doesn’t apply to excess parachute kayman which are kind of seven big severance packages, so it’ll be attacked with corporate rate and again, most for most of your listeners, perhaps almost ology listening longfield anything to them other than the policy of federal government looking to get more more tax money from non-profits on, they’re looking for ways to do that and course, they’re going to get the big ones first. But what? How houses that people down so twenty one percent napor pre-tax rate on compensation of more than million dollars state your five highest employees for tax exempt organization for charity? Well, i wanted to spend time on the excise taxes that only apply at the highest levels of the charitable community because of what he said on what i said earlier hutchisson erosion is brilliant in the national front is the destruction of a longstanding principle in this in the federal tax code, that’s non-profits charitable organizations don’t pay tax, they’re a tax exempt, and now you’ve way are with things the destruction of that principle, and i i think it was it was worth standing up for before it’s still worth standing up for even though the battle the battle has been long, hopefully the war will not be lost, but this is something that is reversible, but as it stands now, we’ve seen that defamation of a long standing three people in this in our federal tax code. Yeah, so it’s a double edged attack and so well put what you said, honey, but it’s a double its attack where authorities are going to get less money, governments are goingto fundchat ortiz last, you’re going to have to have a spending cuts in orderto fund that deficit has created bythe new ac on and then at the same time they’re going to actually tax tax exempt organizations now where they had not done so the floor so it really is a double yeah, onda geun, the principal. Even if you’re not, you’re your organization is not impacted slippery for jean talk about it. It’s at the highest levels now of the non toxic community, but in a couple of years or the next tax code iterations, it could be the midsize organization. Then we could be looking at community colleges so you know, principles that were standing for on dure point well taken about there also being a loss of revenues and that that impact a cross section of non-profits from the smallest to the largest revenue decrease. All right, gene let’s, take let’s, take a break and we’ll come back. We’ll talk about the things that weren’t included, and then you also have some predictions for twenty eighteen and what you think this is gonna lead to? So you take a break, pursue it, data driven fund-raising field guys, that is their store on the listener landing. Of course, she’s probably got a name last pursuing capital p there was a lot more data generated in twenty, sixteen, twenty, seventeen and in all of history, that remark that is remarkable in two years leave out pain data data creations for the hundreds of years that we’ve been tracking, creation of data on dit leads to too much some people call this analysis paralysis, but you need to break down what is important in your data and that’s. What the field guide is something you do to translate the data that you already has into of active inside that are going to help you in your own mostly fund-raising strategy you’re acting on your data and you know you’re not you’re not stuck in overwhelmed and paralyzed. Some people say, because reports being nothing, you got the fancy reports, but if you don’t know howto act on the data that no, no values pursuant has taken what they’ve learned from working with lots of big organizations, and they boiled it down to basic principle to help you on the small and midsize level follow-up you may have heard rumors too effective big non-profit ideas for the other ninety five percent that’s what we’re talking about that’s what the field god is all about, you know that data? Uh, pursuing data driven thing, david driven technology enabled. We’re talking about a data driven apart they’ve gotten down to basic principles to help you data driven fund-raising field guide tony dahna slash pursuing capital now. Time for tony. Thank you. You got your twenty eighteen. Covered all this month, as he and i are doing right now, we did a couple weeks ago last weekend before, and we’re doing it next week as well. Uh, next week, it’ll be me and any sample ward i’m gonna be talking about starting your plans e-giving in twenty eighteen and then amy is gonna have her twenty, eighteen plants. Wei had maria, twenty, eighteen plants now there’s time for a plan and gene were in the midst of it right now, so i’m going to spend time on bake off to play e-giving who best prospects are i’ve got a bunch of marketing tip talk about the stewardship of your recognition society, all four toes next week’s show so over a month you covered for the years, all you do is keep listening, lovely listeners and that, tony, thank you. All right, i am going to actually abandon the live listen love podcast fund-raising osili affection, success to say you know that they are going out to use which category you fit in and the reason on contamination my my my love and my pleasantries in my affections because jean and i have so much to cover with. The new tax laws. So i want to get right back into it, okay? James, um, let’s, let’s. Talk about what? The things that could’ve been worse. There are some things that weren’t included. Yes. So the thing i think for her non-profits that was not included that was, uh, in previous iterations of the filthy became a law that was the repeal or the weakening of the johnson amendment. And the johnson amendment is essentially the provision under five a one in three that prohibits charities from engaging in election hearing that is spending their resource is endorsing or closing kennedy with latto so it’s really made charities kind of non partisan in that matter is that they were not engaged, are not able to engage in election area, right? And this was not included. Okay, i know that charitable community is divided on this. Uh, was that was one of the proposal just related to religious organizations. What started out that way on dh? It was trained as a free speech issue. So they there those who had promoted repealing or weakening the johnson amendment to allow for election hearing. We’re really kind of the major’s big evangelical churches. I wanted to fund campaigns basically, um, on and so on by taking away the prohibition o r by taking away that prohibition against election neary they could do that. But, um, it’s really was a weak argument to say that there was a constitutional space for a tax exempt organization to be able to engage in an election year, and certainly churches are open to engage in election hearing and half free speech rights, but for the privilege of past exemptions that’s something that charities give up on, but the general idea is and remember that one third of the revenues they’re coming from the government way don’t really want to spend public funds to fund campaign. We want them to be spent on their charitable purpose and opening it up or even weakening assad still has done it again. We’re talking three twelve on disability stoners to say, hey, i’ll be a million dollars, but only if all of your social media messages on your email blast how everybody to vote for candidate act dahna and that’s the only way you’ll get my money now that was about charity almost nothing, right? Just put that in their email blasts and all the social media messages, but they would be beholden to donors in some cases, or just demanding that they become very part of that. You know, that was problematic. Yeah. There was great potential for that. All right? Well, so thankfully not included, but i don’t think that johnson amendment’s of steel is a dead issue, is it? No, it’s not so it got thrown out of this tax still because they needed to pass something by the end of the year that was that was there their goal, so they knew that that was going to be a battle that was hard going to be hard to resolve right away, but i’m sure we’ll see it hopping up in other bills, including quickly to make sure that we don’t have a shutdown on government. So yeah, we’ve got another bill, right? Our next eleven, and i was gonna call you the next spending bill. We’re only funded through january, is that right? You think that i think they have to do it by january to fix it on extension by january so that maybe their own back instant into play and and again, you keep saying that with the affordable care act provisions as well, they getting thrown back into other bills on, i guess that’s how politics works it’s not very pretty that way haven’t seen the end. Of the movement obliterated, johnson amended, which is explicit core. Also, thankfully, we didn’t lose the charitable contribution deduction completely, which was which was talked about. Yeah, and not only was it talked about this, i found really surprising, but it’s. Just a few days ago, the wall street journal’s, the ford of editors, spent out an article criticising the charities for complaining about attack still, and that that’s, really what should have happened with the repeal of the charitable contributions. And i thought that was quite shocking. But so that was from the wall street journal just a few days ago. I’m saying that charitable contributions, deduction, repeal of that deductions were completely justified, so they don’t go over there. They don’t see the over there and down the street from where i am, a couple miles, they don’t see the double extorted non-profits now facing. Today that they either don’t see it or they don’t think it’s important. And i think the argument is that, you know, just like we talked about earlier, that people should give from their generosity of heart, um, and not for tax purposes. But it doesn’t started taking to attend well, that tax purposes play a price because people, how much income they’re going have left over, you know, with which to live so that a part of this it is something. Thankfully, the repeal of the terrible contribution deductions, thankfully, was not included in any of the pills or in the final law. And i think some of the big charity advocate in the country moving into sectors that council non-profits pompel foundation association fund-raising professional writer. They were very helpful and ensuring that way didn’t provision. Okay, all right, well, if it wasn’t either bill, then it seems to be a good sign that it’s not it’s, not something that is likely to come up again. I won’t be enough political backlash not to see it come up again, but i think people have to be delicious. Yeah, we thought to be vigilant about it. Yeah. Okay. Anything is under attack now, so potentially because a lot of things being being questioned bonem uh all right, what else? Volunteermatch island breeze? That’s the same thing is still gone low dahna you know, i think that was ridiculous. So it’s been suck it fourteen cents for miles to charity, vilified the most of your listeners. You want teo, take a deduction of the volunteer for driving on behalf of charities. Maximum production, you khun sake is fourteen cents per mile. Of course. Doesn’t miree doesn’t taste in the cost of your gas and the wear and tear on your ears. But that’s what? We’re stuck it. And there was no assessment made even though it was in one of the earlier still that never got finalized. The business raises like fifty six. Fifty seven cents. Yeah, exactly. So it’s kind of ridiculous here if you work for business and you drive in the mid fifties area. Dr charity? Yes, i think about that. Right as, uh, you are driving around doing business, the business of your non-profits, and you can deduct that somewhere around it’s over fifty five cents a mile. But your volunteers, we’re doing the same work you’re doing well, not exactly, but they’re further in your corporate your charitable mission, you’re volunteers were giving their time, unconference stated, and driving around, using their vehicle to further your charitable mission, just like you’re doing, they can only deduct fourteen cents per mile, so that as you’re as you deduct and you calculate your your deductions for for twenty seventeen, think about your volunteers and the low rates you know there will be multiplying by point one four while you’re multiplying by point five, six something, yeah, fifty four point, five cents a mile for a business deduction this morning. All right, so fifty five, fifty five. Yeah, and the fourteen cents has been there for twenty years. So the last time, nineteen, ninety seven, so, yeah. All right, so we couldn’t get that one done. But that would have been that would have cost. Uh, money is what it would have reduced the federal revenue, and they don’t know they had to. Tio had to balance it out, so that was something we lost. What else? What? Anything else on the good side that’s that wasn’t included that it’s good for non-profits that wasn’t included. Buy-in yeah, i think there’s a few things, so well, it started out bad. There was there was initially in one of the bill over appeal of private activity bonds, bonds used by non-profits to build schools or hospitals, affordable a thousand organizations for finance purposes, but they wanted to kill that. But that was fortunately, thrown out of the final law that that was taken out. But there still is a repeal of fancy self-funding bonds, which actually has to do with refinancing outstanding status. Lower interest, though there, there is a a portion of that that has gone away, so you can’t get in the van three funding fonds without having to pay the penalty. But unfortunately, private activity bonds are still okay, so that was that was good, all right and again, that’s worth mentioning because you want to preserve the principle that that have been so long standing in on benefiting charities in our federal tax code. So, uh, of course, it was good that they want repealed, but they could have been. And if it had been you, that was been yet another blow to the charitable communities in the federal tax code. The things they think they’re worth standing for, whether whether it affects your five, one, two, three or not, it’s may trickle down. Wait a minute. Buy-in. Yeah, wei have just a couple minutes before, before another break. Uh, okay, what else? What else is beneficial? That wasn’t that could have been worse. But what another thing that could have been worse? It is a penalty that exists if you pay somebody is a charity case. Somebody excessively and often times that’s fraudulently done take give money away to some individuals who used music to charity. Yeah, we’re talking about the benefit is, you know, the person that benefited from that on excellent benefits transactions penalty, which could be a hired one hundred percent of the excessive amount. But if they got accepted unconference duitz but the charities was never hit with a tax on that. It was the person that benefited from the tax and potentially board members who approved it, knowing gives to be excessive. They could get hit with penalty tax to writhe. Bill one of the bills that came out out of the house and senate can remember which one says, no less hit the charity with attacks as well with charity which is now lost money to somebody who’s unscrupulously taking advantage of them is now with for that loss. Well, fortunately, that didn’t make the law, but that would have been another blow to charity? Yes, and that was in one of the bills. That was in one of the bill. Maybe a smaller, really important ones for us is one of the bills wanted to eliminate something called a rebuttable presumption of reasonable and the rebuttable assumption of reasonable is his guide that way get from the irs on under treasury regulations that say he followed these rules to ensure that people are not going to overcompensate themselves with directors are officers and they’re going to enter into some sort of financial transaction with the organization handup fifty, are looking to do that in a good space on the board approved this by a majority of disinterested directors. They’re independent, they’re not related to the director officers is going to get the condom station. It might be, you know, to be paid as the ceo or might be leased out on office or whatever it is. You follow these rules with independent boardmember moving in and getting comparability data and make sure that it’s not excessive, then there is this rebuttable presumption of reasonableness that that the irs was gonna say, i presume it’s to be reasonable if we’re going to attack it’s going to take you to court, we’re only going to do that really they wanted eliminate that. Procedure. So everything was before we’re not quite sure whether we can justify this salary or not, but they didn’t. So, yes, that’s, a part of that was not in there, that we didn’t lose that safe harbor. Okay, you gotta take a break. In-kind hello, credit card, payment processing. Please check out the video, which is that tony dahna may last. Toni keller explains the process of businesses switching to tell us and how you are going to earn fifty percent of the revenue that teller get from that relationships. So that is passive revenue for you each month. Nice long revenue tail. The video also explains there one hundred percent satisfaction rate and they have a price sametz guarantee. But you, as a non-profit radio listener, you get more than the mirrors. Humbug, humbug. On the match, you will get two hundred fifty dollars. Hello? Cannot say this money on it. Credit card processing odds are hello can save money. But if they can’t, you will profit under fifty dollars. Video covers switching process on dh. But that is all free and there’s a nine days. Many days. Policies. Business isn’t satisfied. You go out in the first month newsjacking needed because of that fact. But it’s there, if you need it that you wanted. Um, so take a look at the video. Think about the business is that i can help you by switching their processing two tellers. And that is all that tony got an a flash. Tony, tell us now, let’s, go back to chicago. And this, uh, you tax law. Well, it’s definitely knew, but, uh, no, no it’s. Not that great. I don’t think, um, anything else? I mean that that that wasn’t included. And then i want to i want to get to your predictions for twenty. Anything else you want, share that baby? Isn’t news that it wasn’t included? Well, i just say one thing, which, which isn’t perhaps, um, good news. Is that the individual tax benefit that we talked about a little a little bit earlier, i said they were temporary, just to know that those just here after two thousand twenty five. So, yeah, doubling the standard deductions and some of these other favorable provision for individuals will disappear and that’s, because they couldn’t reduce the deficit created by the tax laws. Again, bonem benefits going to the wealthy and stick businesses with folks that we see, statements. Five republican congress with the hope of this whole trickle down and eventually benefit employees and everybody else. So individuals have the corporate like carrots. Yeah, the individual benefits sunset in twenty twenty five, right? Yeah, we don’t even get them. Get them for ten years. And this will be done officially that corporate they have no sunset. Whatever longer. I don’t think they have the sunset of their government. Okay, well, that’s. Good for them. Okay, i’m glad. Yeah. Okay. See the reflection from thirty five percent. Twenty one percent tax write corporations almost reduce the tax burden. Yeah, well, those Numbers again to say that 1 more time. From what? The what from thirty five percent. Twenty one? Yeah. Good. I’m happy for them. Okay, now you have the love some predictions about what’s gonna be happening and you wave these from allowed its non-profit law blog’s dot com the first twenty. Eighteen year ahead. Addiction for non-profits twenty eighteen. But you don’t have to go there if you don’t want to get too cocky right here. I want you to know i want him to get traffic on by-laws. What? You don’t have to got it right here. What’s gonna happen to you, what’s that gonna look overall really do well with just one prediction on and that’s going to be the rise of five o went for social welfare. Or is that what that is? About five months support? Social welfare organizations are pretty well known. May not know the code as well as five. One, two three. They include piela used they lose air sierra club and are a onda was w now the’s are advocacy organization and they’re kind of flight five. Twenty three organizations that they are tax exempt and exists for the social welfare of the community. But what’s different inside his stem contributions, not respectable. And the reason for that is taken lobby their hearts, success without limitations. They spend all their money on lobbying to change laws. And they also spend uh along with this has their primary activity. They could devote their activities to endorsing an opposing political candidates so you could see very aggressive positions. That’s not what i would recommend, but it’s very aggressive positions. We could see these five one for organizations. Spend forty nine percent of their income distort things. Can and individuals don’t get a charitable deductions for giving to them. We just spend a long time talking about how the incentives charitable giving has been reduced anyway, right? And that’s. Why? I think we’re going to start to give five, one four organizations because they are unhappy on either side. They’re unhappy with certain latto on e-giving five, one four organizations. Those organizations have a lot of power, and they have a lot of cardio intervene in election. Well, and we’re talking now about twenty five or six percent of taxpayers getting the benefit of any charitable contributions. So for ninety four, ninety five percent of taxpayers, it doesn’t make a difference from attacks positions, whether you give to a five, one, two, three, four, five, one, two, three, four for that matter, if you just give it to a for-profit business, if you want bonem so where i think we’re going to see people who are unhappy with long on both leinheiser buy-in, say, working at a fund social welfare organization, really, dramatically change elections changed. By-laws and don’t ask the limitations. Work-life and we are going to be seeing a lot of importance battles in congress you mentioned earlier around the social safety net, so security, medicare, medicaid, you mentioned the affordable care act, i think they’re all going to be coming up again and again in either in their own bills or as part of seemingly unrelated koegler they are really good deals that get stuck in so there’s going to be a lot of political battles team thought on dh saying five o once before can can engage people buy-in yeah, possibly be more powerful that way, which is why i think more money will flow into them. This is a highly onesie course are also where guards money goes money where the public doesn’t know self-funding political candidates because they’re shuttling their money through five o one for organization, again from an aggressive that i spent forty nine percent of its income endorsing for opposing a particular political candidate. Five twenty three could be none of that a cz longer johnson and then it’s not repealed, they still do five months before it can so scary thing and along the other issues that are really hot and up for advocacy. Immigration dreamers, for-profit inequality gap, a gender discrimination, disability, dahna there’s, just so many hot buy-in issues right now and again, i understand there’s arguments on both sides, and so we’re going to keep money flowing into these organizations to affect election because they are elected. Officials have the power to change law, so you’re predicting more flowing into existing before and more tea for inc. Yeah, more. C four’s incorporated dark money going into the fund elections than influence elections and change elections. Absolutely. All right, we got another prediction. Check it out. Twenty eighteen year ahead as the non-profit rob log dot com team. Thank you so much. Thank you. They’re usually problem genes. Thank you very much. Happy new year following at pre-tax. Okay, if you want porter, great content following the guy next week, start your plans e-giving in twenty eighteen and twenty eighteen plan like that before you missed any part of that, james. So i’d be you find it on twenty martignetti dot com, supported by pursuing online tools, more mid sized non-profits data driven and technology labor dahna regular guiding you beyond the numbers piela and tell her credit card and payment processing tax revenue stream. Tony got a last toni taylor creative finish with claire miree family is the line producer shows social media is buy-in shudder, and this music is, by time you really next-gen non-profit video taking non-profit ideas for the other ninety five cents. Go out secret. Hey! What’s not to love about non-profit radio tony gets the best guests check this out from seth godin this’s the first revolution since tv nineteen fifty and henry ford nineteen twenty it’s the revolution of our lifetime here’s a smart, simple idea from craigslist founder craig newmark insights orn presentation or anything? People don’t really need the fancy stuff they need something which is simple and fast. When’s the best time to post on facebook facebook’s andrew noise nose at traffic is at an all time hyre on nine a, m or p m so that’s when you should be posting your most meaningful post here’s aria finger ceo of do something dot or ge young people are not going to be involved in social change if it’s boring and they don’t see the impact of what they’re doing so you gotta make it fun and applicable to these young people look so otherwise a fifteen and sixteen year old they have better things to dio they have xbox, they have tv, they have their cell phones me dar is the founder of idealist took two or three years for foundation staff to sort of dane toe, add an email address their card. It was like it was phone. This email thing is fired-up that’s why should i give it away? Charles best founded donors choose dot or ge somehow they’ve gotten in touch kind of off line as it were on dh and no two exchanges of brownies and visits and physical gift. Mark echo is the founder and ceo of eco enterprises. You may be wearing his hoodies and shirts. Tony, talk to him. Yeah, you know, i just i’m a big believer that’s not what you make in life. It sze, you know, tell you make people feel this is public radio host majora carter. Innovation is in the power of understanding that you don’t just do it. You put money on a situation expected to hell. You put money in a situation and invested and expect it to grow and savvy advice for success from eric sacristan. What separates those who achieve from those who do not is in direct proportion to one’s ability to ask others for help. The smartest experts and leading thinkers air on tony martignetti non-profit radio big non-profit ideas for the other ninety five percent.
