Changes to charitable deductions on the horizon?
July 24, 2013
When individuals make donations to any charity of their choice, they are able to write off this generosity come tax season. However, in the wake of years-long financial turmoil, American lawmakers are considering changing this code to benefit the federal budget and save money wherever they can. A number of nonprofit leaders, however, are protesting this possibility.
The Chronicle of Philanthropy reported that a number of government leaders plan on submitting recommendations for tax code overhauls on July 26, and charitable donations might be a casualty. But members of the Faith and Giving Coalition are meeting with some Senators beforehand to explain why they believe giving money to nonprofits falls under the proposed qualities that would allow tax breaks.
The Hill noted that this isn't the first time a move like this has been considered - in the past, Oregon and Minnesota both considered ceasing write offs for giving, but those efforts were abandoned. More recently, Missouri, Kansas, North Carolina and Montana renewed their charitable deduction tax laws.
According to The Chronicle of Philanthropy, if charitable deductions are dropped from the tax code, many estimate that donors will cut back on giving by $9 billion annually.
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