New tax rules create questions around year-end giving for Sacramento charities
December is one of the biggest times of year for local charities in the Sacramento area.
Local organizations like Saint John's Program For Real Change depend on donations to fund their workforce training programs and housing for women and children.
"Every dollar raised really goes directly into the programs and services we provide," said Scott Richards, CEO of Saint John's.
Getting contributions before January 1 allows them to qualify for matching contributions. It also comes at a time when some nonprofits are bracing for government funding cuts.
"As we look at tighter economic times, a lot of us doing this work face uncertainty," Richards said.
But as the year comes to a close, there are new charitable donation rules to consider as a result of the federal spending bill signed last July 4.
And that's creating some uncertainty as to when the best time is to make a financial contribution.
"If you itemize your deduction, it may be beneficial for you to donate by year's end, and if you take a standard deduction, it may be beneficial for you to donate next year," said Kelly Siefkin, with the Sacramento Region Community Foundation.
The new rules allow individuals who use the standard deduction, which is about 90% of filers, to also deduct up to $1,000 for charitable cash donations, and couples can deduct $2,000.
But you have to wait until January 1 to get the tax write-off.
"This new law, I hope, will inspire more folks to give," Siefkin said.
So whether it's before the clock strikes twelve on New Year's Eve, or sometime next year, local charities say any generous donations will be appreciated.
"There are lots of opportunities across Sacramento to invest in our community," Richards said.
"If you're considering yourself a member of this community and you want to see great things come, consider giving," Siefkin said.
Charities say there are also tax-advantaged ways to donate through retirement accounts and by "bunching" contributions before the end of the year.