Earlier this summer, the Biden administration released the “Green Book,” which explains revenue projections and the administration’s proposed areas for tax changes.

The Green Book suggests an individual tax rate increase from 37 percent to 39.6 percent and a corporate tax rate increase from 21 percent to 28 percent. Also, this proposal would increase the long-term capital gains rate from 20 percent to 39.6 percent for those taxpayers with annual incomes exceeding $1 million.

Effects on Charitable Giving

Increases in the individual and corporate tax rates would likely result in increased charitable giving due to the increased value of a deduction for the taxpayer compared to the current rules. Regarding capital gains, individuals will likely place greater importance on giving to charity and incorporate this strategy into their tax planning; taxpayers will likely prefer to transfer appreciated property to charity rather than pay a large amount of tax upon their death or transfer to a third party.

Follow the tax changes closely so you can introduce the idea of more tax benefits to your donors.