In a philanthropic environment that is consistently changing, foundations can remain flexible with grant management software. When philanthropic groups are in a position where assets may increase or more donor-advised funds are popping up and requiring the assistance of community foundations, these organizations can benefit from more effective ways to manage their processes.
New bill passes in the House
For instance, charitable giving could see an expansion overall, thanks to a new bill that was recently passed in the House of Representatives. The legislation includes a group of tax breaks that will encourage many different groups, including private foundations and senior citizens, to increase their charitable giving, The Associated Press reported. The vote resulted in a 277 to 130 vote in favor of the bill, with more than 50 democrats joining a republican majority.
One provision provides a tax break to individuals more than 70 years old who make donations from their retirement accounts. Another provision lessens excise taxes for private foundations between 1 and 2 percent, according to The Chronicle of Philanthropy. However, The bill could be beneficial for many different people because it extends the period for which individuals can claim deductions for charitable gifts, as long as the donation was made by April 15.
This specific provision could increase donations related to natural disasters, which often occur in the early part of the year, The Associated Press noted. In 2010, the deadline was extended to encourage more donations to earthquake relief efforts in Chile and Haiti.
However, the rules could eventually face a presidential veto. President Barack Obama opposes the bill because it does not provide an alternative way to accommodate the $16 billion in tax revenue that could be lost over the next decade if the proposed changes become law.
Grant management software helps foundations remain nimble
While this particular bill may not inevitably become a law, it’s important for foundations to keep in mind that the environment around charitable giving is changing. By giving strategically, these organizations may be able to more effectively realize their missions. For instance, if the bill does happen to increase donations in certain areas, foundations that also focus on these issues may want to focus their giving elsewhere or increase giving to similarly needy organizations that are not experiencing the same influx of assets. Grant management software can help foundations keep better data, which can help them manage their processes more effectively.