Deep Diving a Rabbit Hole

Disclaimer: This post is presented for informational purposes only and is not to be construed as tax, legal, or any other professional and/or political advice.

Having read that overall charitable giving has decreased in recent years, I’ve been curious lately about the impact of the “Tax Cuts and Jobs Act (TCJA)” on that decrease. That is, when TCJA was signed into law in 2017, the standard deduction was almost doubled; but this also eliminated many/most itemized deductions for those who take the standard deduction. The itemized deduction of charitable giving is among those eliminated when taking the standard deduction. (There was a temporary allowance of $300 for single filers and $600 for married-joint filers, but that has since been eliminated.)

My curiosity triggered my deep dive into a rabbit hole of Internet research. Specifically, I’ve been wondering if there is a direct correlation between the decrease in charitable giving and the elimination of the deduction for charitable giving when taking the standard deduction. If yes, is it because of the loss of an incentive for giving? Are there other factors that have played a role in the decrease (like economic uncertainty)? If there are multiple factors, how are researchers able to quantify the impact of each one?

My curiosity then led me to wonder if anyone has proposed legislation to permit the allowance of a charitable giving deduction for those who take the standard deduction. (Hint: Research the bipartisan “Charitable Act.”) This research then led me to discover that many aspects of TCJA will sunset in 2025. I did not know this. (Refer to the nonpartisan Congressional Research Service’s [CRS] “Reference Table: Expiring Provisions in the ‘Tax Cuts and Jobs Act’ [TCJA, P.L. 115-97]” dated November 21, 2023. *See the link below.)

Since I was already deep in research, I burrowed further into my rabbit hole to find out if CES, as a nonprofit, is permitted to mention this matter in a blog post, since our 501(c)(3) status prohibits us from engaging in certain political activities. I learned the answer to that question is yes, as the “Charitable Act” and the CRS report are bipartisan/nonpartisan; we are not endorsing any candidates; and we are not encouraging legislation one way or the other. 501(c)(3) organizations are actually encouraged to engage in nonpartisan activities that benefit the public at large without taking one side or the other (for example, by educating the public on civic issues), to the extent permitted by law. This blog post is simply meant to educate the reader regarding the referenced topics and to encourage the reader’s independent research.

I learned a lot as I researched the mentioned topics. In particular, I learned (yet again) that starting a 501(c)(3) is not for the faint of heart. There is a lot to navigate in the nonprofit world to ensure compliance. This brings me full circle — though in a somewhat convoluted way — to last week’s blog topic of the advancement of technology. If not for the Internet, I would not have been able to readily research these topics. As much as I resisted technology at first several decades ago, I have grown to deeply appreciate its value in my everyday life. Helping CCS’s students improve their technology skills with a computer upgrade is critical to their educational advancement. With or without a tax incentive for giving (another full circle back to the beginning of this post), the real reward for giving to help our computer upgrade campaign is knowing we’ve each played a role in helping CCS advance its students in this technology-driven world. Thank you for coming alongside us in this effort.

*Link to CRS Report:

https://crsreports.congress.gov/product/pdf/R/R47846#:~:text=Under%20the%20TCJA%2C%20the%20personal,%240%2C%20effectively%20suspending%20the%20provision.&text=Expires%2012%2F31%2F2025%20Personal,amount%20would%20have%20been%20%244%2C150

"Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver." (2 Corinthians 9:7, NIV)

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Big Dream Blog

What Motivates You to Help?

By Tammy Choleva • January 20, 2025

When it comes to motivation to do something that needs to be done, the best motivators are intrinsic. In other words, the ideal is doing (or helping to do) what needs to be done simply because one has the inner sense that helping to meet the need is the right thing to do. Extrinsic motivators, on the other hand, are the promise of external rewards for helping out (or the withholding of negative consequences for not helping out). When seeking help to meet a large group need, extrinsic motivators do not typically move the meter, because not everyone is motivated the same way. Some may find small prizes to be motivating; for others, only big prizes. Some may find simple praise to be motivating; for others, only public recognition. Some may find winning a trophy to be motivating; not so for others. Some may find not being punished to be motivating; others do not care about the threat of punishment. You get the point. Here is the conundrum with getting families on board with school fundraising. If families support the need for raising funds for the cause at hand, they will naturally want to do everything they can to bring success to the fundraiser. They will be intrinsically motivated to help to the best of their ability. On the other hand, if they do not support the need for raising funds and/or do not comprehend the potential outcome if funds are not raised, they will (at best) put in the bare minimum of effort or (at worst) not help at all or even speak negatively about the need for fundraising. Likewise, donors are intrinsically motivated to give or they are not. Extrinsic motivators do not typically raise goal thermometers. This is the bottom line. Since we cannot motivate others intrinsically (that's the work of the Holy Spirit), the leaders of nonprofits (including schools) must instead pray for intrinsically motivated helpers to step up. Even so, we can still provide extrinsic motivators, but not with the expectation that they will move helpers to help more or givers to give more. Instead, the purpose of extrinsic motivators is to help keep the need in the forefront and to try to add some "fun" to FUNdraising.

Winning in Business (and Life)!

By Tammy Choleva • January 13, 2025

In the world of nonprofit fundraising, it can be easy to fall prey to a discouraged spirit. The same is true of starting up a new business and figuring out how to go from zero customers to sustainability. For that matter, it can be discouraging for even organizations that have been around for decades to constantly have to reimagine marketing, especially when reaching out to a very specific niche. The lattermost marketing challenge can be particularly difficult for a small Christian school that simply desires to accomplish well its mission. In the case of The Cornerstone Christian School , that mission is “To engage and educate young people to know and be transformed by Christ through the ways they think, act, learn, serve, and work together for God’s Kingdom.” It is not easy to navigate how to most effectively and affordably find and market to families who desire to partner with a school that will teach their children from a biblical worldview. As a 501(c)(3) that is designed to support Christian education by supporting this school, we at Cornerstone Educational Support, Inc. also experience a similar challenge. The difficulty is particularly true now that we live in a world of information overload. Since the advent of the World Wide Web and email and texting and app push notifications and social media and so on, the over-sharing of knowledge has become the norm. Many people simply muffle the cacophony by quickly skipping past the word noise. This does not bode well for organizations that must communicate their mission in order to survive (both nonprofit and for-profit entities alike). Here’s the thing. There is one God, and we are not Him. He alone is responsible for results. He simply calls us to be faithful to the steps He calls us to take (including pivoting when He calls us to change course), while trusting Him for the results. So, there are three interlocking keys to avoiding discouragement by what seems to be an insufficient result: (1) Seek God’s wisdom on steps to take (moment-by-moment, hour-by-hour, day-by-day); (2) Rely on the Holy Spirit for the empowerment to take those steps; and (3) Trust God for the results. Only then can we rise above discouragement and WIN at accomplishing what He has set forth for us to do, all for His glory. The same goes for both business and life!

Looking Ahead to Year-End Giving

By Tammy Choleva • November 25, 2024

As a public charity 501(c)(3), CES is responsible to pass the public support test. “In other words, [CES] must be supported by the general public. For that to be true, a significant amount of revenue (at least 33%) must come from relatively small donors (those who give less than 2% of the organization’s income), other public charities, or the government. That leaves 67% to potentially come from other, less diverse sources.” ( “Private Foundation vs. Public Charity: Spot the Difference,” by Greg McRay, EA, Founder and CEO of Foundation Group ) To help us reach this year's public support charity test, we are looking for friends of CES and CCS to help spread the word that we are challenging ourselves to receive 100 donations of $500 each (or 50 donations of $1,000) by December 31, 2024. Keep in mind that many companies generously match the charitable contributions of their employees, and some may also match gifts made by retirees and/or spouses. To find out if your company has a matching gift program, check with your company’s Human Resources office to ask if they offer gift matching. Your Human Resources department will provide a matching gift form to complete and mail to Cornerstone Educational Support, Inc., 903 Main Street, Manchester, CT 06040, or email to Tammy@CornerstoneEducationalSupportInc.org. Company matching programs give your donations twice the impact! In addition, taxpayers who have already reached the age of 70.5 years or older may plan on making their charitable contributions directly from their traditional IRAs via qualified charitable distributions (QCDs), thus possibly reducing their taxable income. With other age restrictions being considered, these donations might also count as required minimum distributions (RMDs). A QCD is a direct transfer of funds from the traditional IRA custodian, payable to a qualified charity, such as Cornerstone Educational Support, Inc. QCDs are counted for the tax year in which they are taken and (if meeting the additional age requirements) might also count toward satisfying that year’s RMD. Disclaimer: We are not accountants or lawyers, and this is not tax or legal advice. You will need to talk with your tax and/or legal advisor to see if you qualify and to learn how current federal and/or state tax laws affect you.