For the following reasons the new tax law may negatively affect giving particularly at schools, lacking large numbers of rich alumni, like Tech:
- The larger standard deduction will reduce filers itemizing deductions by 60%, you have to itemize to take a deduction for giving,
- Can affect long term alumni connection to schools as no tax incentive/no giving no connection;
- Doubling the estate tax exemption may impact wealthy donors decisions to bequest,
- They can now pass on more to families;
- Athletic programs requiring donors to meet certain levels to access preferences can no longer deduct 80% of that donation;
- Universities with large endowments meeting certain criteria, that will not affect Tech, will have to pay a tax on endowment income.
