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LabMaster

New Tax "Reforms" offering D.C. Benefits

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With all the new tax breaks coming to many groups, individuals, corporations and all, what benefits/breaks are coming the way of drum corps'?  I know there are finance experts out there.  What helps corps' or MM's?

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3 hours ago, LabMaster said:

With all the new tax breaks coming to many groups, individuals, corporations and all, what benefits/breaks are coming the way of drum corps'?  I know there are finance experts out there.  What helps corps' or MM's?

MM families and friends can donate more to them each year.

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6 hours ago, Ghost said:

MM families and friends can donate more to them each year.

Except with the increase of the standard deduction, there is little incentive to itemize deductions, which could have a cooling effect on tax-deductible donations as a whole. 

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This study indicates there may be a reduction of donations across the U.S. of up to $13 billion, or 4.5%. This does not bode well for DCI or the corps involved. 

Many different sources indicate that benefits are overwhelmingly skewed towards higher income households, and many lower and middle income earners will actually see their tax burdens increase. Most of the corporate cuts are expected to go to shareholders instead of to investment or wage increases. The national debt will balloon over $1 trillion over the next ten years. All of this disincentivizes donations. 

DCI and most corps probably won't be affected immediately, but expect their financial situations to worsen over time with this trajectory, especially smaller corps or those with marginal finances. 

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3 hours ago, shofmon88 said:

This study indicates there may be a reduction of donations across the U.S. of up to $13 billion, or 4.5%. This does not bode well for DCI or the corps involved. 

Many different sources indicate that benefits are overwhelmingly skewed towards higher income households, and many lower and middle income earners will actually see their tax burdens increase. Most of the corporate cuts are expected to go to shareholders instead of to investment or wage increases. The national debt will balloon over $1 trillion over the next ten years. All of this disincentivizes donations. 

DCI and most corps probably won't be affected immediately, but expect their financial situations to worsen over time with this trajectory, especially smaller corps or those with marginal finances. 

I could argue over the politically biased "studies" being flung around right now.  But instead, let us assume everything you say is true.  I would still contend that the market DCI serves will have more disposable income.  If they have more money with which to make drum corps related purchases, pay dues, or donate... but donating is disincentivized, then the activity should focus on growing its fan base and membership revenues in anticipation of that possible 4.5% decline in donor revenue.

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47 minutes ago, cixelsyd said:

I could argue over the politically biased "studies" being flung around right now.  But instead, let us assume everything you say is true.  I would still contend that the market DCI serves will have more disposable income.  If they have more money with which to make drum corps related purchases, pay dues, or donate... but donating is disincentivized, then the activity should focus on growing its fan base and membership revenues in anticipation of that possible 4.5% decline in donor revenue.

If you want to dig up a more non-partisan source than the TPC (which is very specifically non-partisan), I'll gladly link it in my post. 

I don't think DCI or the corps will be able to make up for the drop in donations via revenue from shows, media products, or other merchandise. From what I've heard in the past, the media portion breaks even, at best. Too, discretionary income has not kept pace with inflation since the 1980s, and the fastest growing DCI demographic, young people, are also the least economically well-off. I certainly anticipate my discretionary revenue to decrease next year, with the tax hike I'm seeing for my bracket certainly part of that impact. One of the first things I'll be cutting is DCI, and I'm already afraid I won't be able to afford to stream shows. I know I'm not the only one in this situation. 

No, the future of revenue for DCI is not a rosy one. 

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3 hours ago, cixelsyd said:

I could argue over the politically biased "studies" being flung around right now.  But instead, let us assume everything you say is true.  I would still contend that the market DCI serves will have more disposable income.  If they have more money with which to make drum corps related purchases, pay dues, or donate... but donating is disincentivized, then the activity should focus on growing its fan base and membership revenues in anticipation of that possible 4.5% decline in donor revenue.

except history shows, and i'm fiscally conservative, but tickle down always leads to recessions. If it's anything like the last one, does the government have the will to step up to the plate again?

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14 hours ago, shofmon88 said:

This study indicates there may be a reduction of donations across the U.S. of up to $13 billion, or 4.5%. This does not bode well for DCI or the corps involved. 

 

I have NEVER donated to drum corps looking for a tax deduction...but I guess others may have different motives...

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1 hour ago, Liahona said:

I have NEVER donated to drum corps looking for a tax deduction...but I guess others may have different motives...

"Render to Caesar the things that are Caesar's; and to God the things that are God's."

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What many non profits find as far as corporate donations are concerned, funds are donated for a variety of reasons such as publicity as we might see when a donation is made and people pose for a photo that appears in a newspaper, public relations and community involvement, or advertising. These are legitimate reasons for giving, so too is simply liking an organization or wanting to contribute to the common good. I don't see this changing no matter how the new tax laws handle deductions. Drum corps biggest challenge of getting corporate donations will be what it has been for many years: proving it it worthwhile compared with the many other groups who want the funds. This is where good development folks, or as they are now often called institutional advancement, are critical. 

Regarding individual contributions, I agree that people give because they want to give more than because it is a tax deduction. Some may give more because they itemize and need to give more in order to deduct, which I know sometimes happens, but this is not the norm. I believe the average amount Americans budget for charitable causes is about 4% of their income, some give more, others less, but again good development people show their organization is deserving of these funds.

As someone in the non profit world, I have not heard any concerns regarding the new tax laws and contributions. There are concerns of how the laws will impact working class people, but that would be more the realm of politics. 

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