Walking from the parking garage to my office in the wee hours of the morning, I usually pass a couple homeless people, still asleep, on the sidewalk. I've felt a desire to make a positive impact in their lives, something big and personal, but haven't really known what I can do that is within my means and would make a lasting positive impact. When I brought the whole family to see downtown and my office on a bitter cold night, over dinner I explained that the people they saw were homeless and had to sleep outside. My five and seven year old kids, too young to be touched with any jade, immediately wanted to step in and do something. They suggested we bring them home, or let them sleep in our car. I wish I could.
With the impending tax changes, I will be most likely going from a situation where I can claim itemized deductions to one where I will claim a standard deduction. Since for every dollar I donate, I will have to pay about 30 cents less in tax, its effectively a 30% discount on any charitable contributions I make in 2017 that I won't get in 2018. You may be in a similar situation if you plan to itemize your deductions (which usually only makes sense if your state/local taxes, mortgage interest, and charitable donations exceed $6,350 if filing single or $12,700 if filing jointly).
Combining my desire to help with my strong compulsion to optimize, I just gave to a couple charities that I hope will make a difference in the lives of those I pass nearly every day downtown. I don't say this to brag, but because I think that giving is contagious. I hope that my giving encourages others to do the same. I'm also hoping the knowledge that this might be the last opportunity to take advantage of the current tax law will encourage others to give too, especially those that have been meaning to, but haven't gotten around to it. Hurry up and get that donation in before the year is over!
