By Tammy Dodderidge
Marketing and Communications Manager
Every week the International Essential Tremor Foundation (IETF) receives donations from individuals who desire to support the work we do. They want to play a role in making a difference in the lives of people with essential tremor now and in the future. We wouldn’t exist without these donations, and neither would our essential tremor informational materials, education programs, research studies, scholarships and awareness initiatives.
Though these donations have always been tax deductible, it’s not the reason most people give. But, it is an added bonus. After all, who doesn’t want to find a way to lower their taxes?
The new federal tax law approved last year is affecting Americans who care about and want to give to charities and nonprofits in their communities. And in turn, this has the potential of impacting the budgets of thousands of nonprofit organizations, including the IETF.
One solution may lie in new proposed legislation called The Everyday Philanthropist Act (H.R. 6616). Proposed by Congress, it would enable people to continue giving through a pre-tax payroll deduction in the form of a Flexible Giving Account (FGA). The legislation was introduced by Representative Erik Paulsen (R-MN) and is cosponsored by Representatives Ami Bera (D-CA), Cheri Bustos (D-IL), Mike Gallagher (R-WI), Mark Pocan (D-WI), and Tim Walberg (R-MI). Their intent is to empower the everyday philanthropist to give back.
Here’s how it would work: employees would deposit a portion of their paycheck into the FGA to be donated to their chosen nonprofit. The deposits would be tax-free, lowering the employees’ taxable income.
The proposal defines an “everyday philanthropist” as “an everyday, working American who, regardless of their status or circumstance, wants to give back to the communities they care about.”
We are grateful to all the “everyday philanthropists” out there who support the IETF and other nonprofit organizations so we can continue to do our impactful work.