YoungAssociates

Potential Tax Exposure For Your Donors?

NOTE This information is out of date. See a listing of recent tax-related articles for more current information about taxes and their fundraising implications.

We have been advising our clients for the past few years that one of the by-products of the housing bubble would be reduced tax receipts at the local level, but the major question remaining is whether Congress will act or simply allow the sunset of the Bush tax cuts to take place on December 31, 2010. We’re not advocating a position on this matter and charities don’t have to, either; we are simply reminding you of the tax exposure that could be offset with gifts and estate planning and suggesting it as a timely conversation to be engaging in with your donors.

Stop chasing the wrong people. Do you know where and who your best prospects are? YoungAssociates’ wealth analysis identifies highly targeted groups within your lists and pays particular attention to tax exposure.

Filing Status Household Income If All Tax Cuts Expire Obama Plan
Single, No Kids $50,000 $1,100 $0
Married, 2 Kids $50,000 $2,900 $0
Single, No Kids $100,000 $2,100 $0
Married, 2 Kids $100,000 $4,500 $0
Single, No Kids $325,000 $6,600 $6,600
Married, 2 Kids $325,000 $7,400 $5,400
Single, No Kids $1,000,000 $48,500 $54,200
Married, 2 Kids $1,000,000 $53,200 $56,300
Single, No Kids $5,000,000 $271,700 $323,500
Married, 2 Kids $5,000,000 $276,400 $325,600
SOURCE: Deloitte Tax LLP.