Adine Momoh Authors Article on Incentivized Charitable Giving for Taxation of Exempts and Practical Tax Strategies

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Partner Adine Momoh's article "Making Permanent a Universal Charitable Giving Deduction to Capture Wealth Transfer" has been published in the January/February 2022 issue of Taxation of Exempts and the February 2022 issue of Practical Tax Strategies.

The focus of the article is charitable giving contributions and deductions and whether making such deductions universal and permanent would achieve certain policy objectives. Momoh advocates that changes made by Congress in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) ought to be universal and permanent. She writes that in doing so, nonprofits can benefit from incentivized giving. She also outlines the general mechanics of charitable contributions, provides a brief history of the charitable contribution tax deduction for individuals and discusses the current law for charitable contributions.

As a result of the Tax Cuts and Jobs Act of 2017, charities were experiencing shifts in revenue, as donations to charities were expected to drop by $13 billion each year from 2018 through 2025, the number of taxpayers who would be able to claim an itemized deduction for charitable contributions reduced and the estimated percentage of taxpayers with a tax benefit from the charitable contribution deduction fell from 21% to 9%.

"Nonprofits have been hit especially hard by the COVID-19 pandemic and were already financially impacted by change to the tax code," Momoh writes. She asks the question of how to "capture some of the wealth transfer that is occurring across the nation" while outlining ways to encourage long-lasting charitable giving to nonprofits in a way that also incentivizes taxpayers to give.

The CARES Act changed the charitable contribution deduction by creating the universal deduction for donations up to $300 and raised the charitable contribution deduction cap. Momoh writes that a universal charitable deduction is not new, but proposes by making it permanent would "allow non-itemizers to deduct some or all of their charitable contributions in addition to claiming the standard deduction." She writes, "Minimize the tax gap, and encourage equity and fairness. Thus, this incentive is also good tax policy."

Momoh defends complex business and commercial litigation matters for securities, banking, estates and trust clients, and resolves creditors' rights and bankruptcy cases in state and federal courts nationwide. Momoh co-chairs the firm’s Estates and Trusts Litigation Group, where she leverages her experience in estates and trusts litigation and bankruptcy and creditors’ rights to provide sophisticated advice and advocacy when disputes arise involving wealth management, wealth transfer and tax strategy. Actively involved in the legal and broader community, Momoh serves on the boards of various nonprofits, including the Saint Paul and Minnesota Foundation, where she chairs the foundation’s Community Impact Committee and serves on the foundation’s Executive Committee.


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