A proposal worries nonprofits as lower charitable tax deductions might keep donors from giving the big bucks.
- Nonprofits in New York City are anxious that a state budget proposal will be implemented that greatly reduces tax deductions for charitable donations.
- The proposal is meant to bolster New York’s sluggish economy by allowing the 3,500 New Yorkers who earn more than $10 million a year to deduct only 25% of their charitable contributions – instead of the 50% it is now.
- If the proposal passes, it could generate up to $100 billion for the state, but it will also greatly decrease the incentive for high-income New Yorkers to donate to charities.
Best Quote
“Any proposal that could possibly decrease private giving is going to be a disaster for all nonprofits in New York City and throughout the state. The state cannot balance the budget on the backs of those in need.” – Michael Stoller, Executive Director, Human Services Council
Tags: charity, donations, nonprofit, philanthropy, tax deduction, taxes