Spending & Earning
Charities Face Projected $5.7 Billion Yearly Hit From Tax Change
The new rules shrink inducements for corporations and rich Americans to give to nonprofits.
The Internal Revenue Service building in Washington.
Photographer: Samuel Corum/BloombergChanges in the tax law signed by President Donald Trump last year are estimated to cost charities billions of dollars annually, according to a new study by Indiana University’s Lilly Family School of Philanthropy.
Overall, funding to charity is likely to drop by $5.7 billion per year from the law, the research finds, despite a new deduction encouraging millions of Americans to give.