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Doing well and doing good: Charities wary of Trump tax plan

  • People in need are served a free Thanksgiving Day meal in Anaheim, Calif., Nov. 24, 2016. Charity organizations are wary of President Donald Trump's tax plan. (CNS photo/Eugene Garcia, EPA)
  • President Donald Trump speaks in the Roosevelt Room of the White House in Washington July 20. Charity organizations are wary of his tax plan. (CNS photo/Carlos Barria, Reuters)

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WASHINGTON (CNS) -- While Capitol Hill and much of the nation have been following the roller coaster of debate surrounding what will come of GOP efforts to repeal and replace the Affordable Care Act, some are focused on what President Donald Trump's proposed tax plan might mean for charitable giving.

His proposed tax plan would place a cap on total itemized deductions, including those for charitable giving. By raising the standard deduction and eliminating the estate tax, experts say that this plan would reduce incentives that often prompt donations to charities.

According to Giving USA's "Annual Report on Philanthropy," individual donors drove the rise in philanthropic giving seen in 2016. Giving to religion increased by 3 percent, 1.8 percent adjusted for inflation, in 2016, with an estimated $122.94 billion in contributions. This accounted for 32 percent of all charitable giving in 2016, which totaled at $390.05 billion.

The Indiana University Lilly Family School of Philanthropy prepares these estimates for the Giving USA Foundation. Though giving rates rose across the board, giving by individuals grew at a higher rate than did giving by foundations or corporations.

Rick Dunham, board member of Giving USA and CEO of Dunham+Company, a consulting company based in Plano, Texas, remarked that two factors that significantly affect charitable giving are the stock market and attendance at religious services.

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