Post-Election Update. Charitable Gift Planners of Central Florida January 12, 2017

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1 Post-Election Update Charitable Gift Planners of Central Florida January 12, 2017

2 115 th Congress - House Republicans retain control but with tighter margins Fractured Republican caucus Trump-Ryan relationship

3 115 th Congress - Senate (*52-48) Republican majority Reconciliation process 2018 election map will impact policy

4 Lame Duck Minimal legislative activity Passed a Continuing Resolution through April 28, 2017 H.R H.R S. 2750

5 Trump Administration How will Trump govern? Will he claim a mandate and where will he use his political capital? Where does he stand on tax reform and charitable giving issues?

6 First 100 Days ( And Beyond) Infrastructure legislation (paid for with tax reform?) Immigration legislation Affordable Care Act repeal Rollback of regulations, executive orders Budget due in February but often pushed back Continuing resolution expires April 28 Debt-limit deadline (mid-march) (look for spending cuts and reforms) Supreme Court and other key nominations ASAP

7 Tax Issues in 2017 Tax reform (very) likely in 2017, Republicans are first looking for bipartisan opportunities while keeping reconciliation on the table House Republicans released a blueprint for comprehensive tax reform in June which could serve as framework for 2017 reform Cost of the plan is $191 billion over the next decade using dynamic scoring; $2.4 trillion using traditional static scoring

8 Tax Issues in 2017, con t Condenses current seven individual brackets into three: 33 percent, 25 percent and 12 percent Expands the standard deduction to $12,000 single rate and $24,000 married couple rate. Reduces number of people who itemize from roughly 1/3 to around five percent Eliminates all deductions except the charitable and mortgage interest deductions but notes that charitable giving is fueled by economic growth

9 Tax Issues in 2017, con t Eliminates the estate tax Reduces corporate rate to 20 percent Creates new business tax rate of 25 percent for pass-through entities (e.g., partnerships and LLCs) Reduces tax on capital gains, dividends, and interest by allowing individuals to deduct 50 percent of investment income, meaning rates of 6 percent, 12.5 percent, and 16.5 percent on investment income depending on individual s tax bracket

10 Tax Issues in 2017, con t Trump s campaign plan was modified late in the campaign to more closely align with House Republican plan Condenses current seven individual brackets into three: 33 percent, 25 percent and 12 percent Increases the standard deduction from $6,300 to $15,000 for singles and from $12,600 to $30,000 for married couples filing jointly Caps all itemized deductions including the charitable deduction to $100,000 for individuals and $200,000 for couples

11 Tax Issues in 2017, con t Eliminates federal estate and gift taxes Reduces the maximum corporate tax rate to 15 percent, all business income passed through from S corporations and partnerships, or earned by freelances, would be taxed at 15 percent Capital gains tax rates unchanged

12 Tax Issues in 2017, con t Tax bill will be critical vehicle for charitable sector issues No consensus on charitable deduction Under Trump plan, charitable giving would fall (in the short-term) Declining federal support for nonprofits

13 Issues of Focus Charitable Deduction Increased threshold for itemized deductions Cap on itemized deductions Advocate for above the line deduction for charitable giving Protect the Charitable IRA Rollover Protect against short term decline in charitable giving

14 Making the Case Charitable giving is critical to offset reductions in spending by Congress Speaker Ryan and Chairman Brady relationship with nonprofit sector Must be proactive to retain charitable giving measures and not reactive to written legislation Non-profit sector must work together to increase impact Non-profit sector must not lose site of the importance of tax policy when facing reduced federal spending

15 Role of CGP in Advocacy Stay Informed of Latest Developments Inform National Membership Support a Unified Voice for Charitable Giving Partner with Leading National Organizations Leverage State and National Membership in Advocacy Efforts

16 Legislative Update Virtual Meetings Hosted by Perry Wasserman, Principle 501c Strategies January 17, :30 am EST

17 2017 Interpret changes for donors, clients and organizations Educate ourselves on changes to vehicles and tools Stay focused on donors and build relationship

18 Your New Association Charitable Gift Planners of Central Florida January 12, 2017

19 2014 Timeline Internal Member Research Board member interviews with members and non members of specific professions. Random phone survey of membership Online survey

20 2015 Jan-March April July October December Timeline Association Laboratories engaged for external membership research Membership Task Force Board of Directors revises Strategic Ends Strategic Ends adopted by Board of Directors SmallBox Marketing is engaged for rebrand and website development SmallBox, during discovery research on brand, concludes the board should investigate a possible renaming of the organization

21 2016 Jan February April May October Timeline Board votes to investigate new name Input gathered from members and councils Board votes to submit name to councils for approval Councils approve new name Public launch of new name, brand and website

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23 CGP Ends Policies END 1: Members have a welcoming, inclusive and engaging professional home at all stages of their careers.

24 CGP Ends Policies END 2: Members have access to meaningful, credible, and high-quality resources to enhance their professional performance at all stages of their careers.

25 CGP Ends Policies END 3: Standards and Best Practices are widely available and accepted by members and the greater charitable planning community.

26 CGP Ends Policies END 4: The greater charitable planning community has a positive legislative and policy environment.

27 Website

28 National Council Partnership National Network National Conference Online Education Resources Online Education Programs Standards and Best Practices Research National Career Center Advocacy Local Network In -person Education Professional Network Council Events Unique Programs

29 Council Support Speakers Bureau Education Programming Access to Updates and Information Bi-monthly Council Newsletter Council Leadership Summit Council Leader Online Network Council Categories and Services Work Groups Membership Development National Affiliation

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