Nonprofits see threat to fundraising with NY tax
July 06, 2010
A New York bill, looking to slash tax deductions on charitable giving for New York's wealthiest, has local nonprofit fundraising groups up in arms.
In an effort to finalize the New York state budget, Governor David Patterson and the state legislature have agreed to cut the amount that New Yorkers who earn more than $10 million annually can deduct on their state tax returns from 50 percent to 25 percent, the Chronicle of Philanthropy reports.
While the proposed tax would raise an additional $100 million for the state government, the paper reports many organizations are afraid of how it will influence fundraising efforts, explaining that because of the recession, nonprofits now more than ever are dependent upon charitable donations.
"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 of the Human Services Council, told the Chronicle.
Only time will tell how the tax affect the charitable habits of some of New York's most reliable - and wealthiest - donors. Last year, Mayor Michael Bloomberg donated $254 million to charity.