N
NSU67
Guest
The removal of tax deductibility of donations to colleges and universities is now law. Forgetting politics, we need to see what effect this will have on RAF donations, and major donors.
For a $1000 donor, probably at 25% bracket, it will amount to only $250. Maybe not much.
But, for multi-million dollar gifts, the effects can be much greater.
Imagine Mr. or Mrs. Gotrocks, being asked for $3,000,000. At the likely tax rate of 37%, that's over 1,100,000 bucks. The 3 mill donation used to net cost Gotrocks 1.9. Now, it will be the full three.
If you think that won't make a difference, then a lot of cpa's whose job is to minimize their clients' taxes, better start a job search.
That's why UNLV is offering to collect the money before the 31st, and prorate it over several years.
So, if I want to give them $10,000, (plus ticket cost, of course) I can buy my tickets for five years.
For wealthy schools who have endowed sports, the hurt won't be as bad, but, I bet UNLV is sweating bullets.
For a $1000 donor, probably at 25% bracket, it will amount to only $250. Maybe not much.
But, for multi-million dollar gifts, the effects can be much greater.
Imagine Mr. or Mrs. Gotrocks, being asked for $3,000,000. At the likely tax rate of 37%, that's over 1,100,000 bucks. The 3 mill donation used to net cost Gotrocks 1.9. Now, it will be the full three.
If you think that won't make a difference, then a lot of cpa's whose job is to minimize their clients' taxes, better start a job search.
That's why UNLV is offering to collect the money before the 31st, and prorate it over several years.
So, if I want to give them $10,000, (plus ticket cost, of course) I can buy my tickets for five years.
For wealthy schools who have endowed sports, the hurt won't be as bad, but, I bet UNLV is sweating bullets.
