Nonprofits depend upon donations and charitable giving in order to do the important work that charities are set up to do. Orchard Human Services, Inc. is no different. Orchard offers the highest quality mental health, developmental, and educational support for children and their families with developmental, learning, and mental health challenges, including Autism and Reactive Attachment Disorder. So news about recent changes in tax law for charitable giving and philanthropic activities was a huge concern. Luckily, Orchard’s board member, Darron Kendrick of Kendrick Business Solutions, LLC, put everyone’s mind at ease a Orchard.
Recent changes in tax advantages of charitable and philanthropic giving have changed. At the same time, the individual exemption for people not itemizing their deductions has increased, offsetting the change for many. Most importantly, for larger charitable gifts that are connected to a business or organization, other tax laws and potential tax credits can still provide incredible benefit for all parties.
Mr. Kendrick explained that philanthropic and charitable giving is a fundamental part of our tax system. The government and society depends heavily upon NGO, or non-governmental organization, activities to help with environmental, social, family, mental health, and even medical challenges that plague society. Nonprofits are authorized by the IRS, Internal Revenue Service, because of the critical importance to the very fabric of society.
In the case of Orchard Human Services, families have access to sophisticated services that might otherwise be out of their reach. So it is in the best interest of the public and of Uncle Sam to find ways for nonprofits to be supported through charitable and philanthropic activities. Moreover, companies need to take a stand in the community to uphold the values and beliefs of key personnel, founding partners, and employees. So organizational philanthropic giving is a way to promote company morale, engage in community relations, as well as improve the lives of those individuals who live in the community where the organization operates. In many cases, employees and their families directly benefit from philanthropic giving by the employing organization.
In the case of companies like, say, McDonald’s, the power of the campaign to raise awareness about philanthropic activities may do as much if not more good in the world than direct marketing of for-pay products and services. The Ronald McDonald House marketing campaigns to promote public awareness for this charity that helps families whose children are hospitalized, is hugely popular, and puts McDonald’s in a positive light with many viewers around the nation.
When it comes time to file taxes, Mr. Kendrick assured that there are compensating strategies that can offset any changes that result from adjustments in laws for charitable deductions. One exciting possibility is earning tax credits from investing in Opportunity Zones to create facilities for nonprofits. This is a way to continue to support favored charities and philanthropic efforts while still benefiting from powerful tax credits.
Mr. Kendrick has many other tidbits and recommendations for individuals and organizations who want to continue to benefit from the tax advantages of philanthropic and charitable giving. The bottom line is, Mr. Kendrick assured, that charities are not going anywhere, so accountants and tax experts must simply step up to the plate to find ways to charitable funding flowing to all the right places.
Darron Kendrick practices in Marietta, Georgia through his firm Kendrick Business Solutions, LLC, as well as providing consultative support for Orchard Human Services and its associates in the Alpharetta, Georgia area. He can be reached by phone 678-491-6038 or at his email firstname.lastname@example.org .
Orchard Human Services offers technical support to other nonprofits and human services organizations:
Orchard’s staff and board of directors possess decades of business and nonprofit wisdom and expertise that they are happy to share with other organizations through collaborative efforts, professional training and development, and presentations. If your organization needs nonprofit technical support in the areas of setting up or managing a nonprofit, educating donors on benefits of planned giving, or handing accounting and tax preparation activities, Mr. Kendrick can be reached through Orchard as well.