Protecting Donor Tax Deductions
Non-profit charitable organizations all over the United States have been preparing to take their case to Congress to defend the ability of taxpayers to deduct their donations and charitable giving while filing their annual federal taxes.
As Congress looks to increase tax revenue by inspecting every possible option given to taxpayers, their gaze has fallen upon the deductions of citizens’ donations, about $40 billion in 2012. Brent Christopher of the Communities Foundation of Texas was one of the representatives of more than 42 non-profits that brought their testimonies to Congress.
Christopher called the deductions an “encouragement” to citizens to give more than they may have given otherwise. Many organizations fear that by eliminating the deductions, even if they were replaced with a tax credit, there could be a serious drop in the donations that keep many organizations afloat. The possible revisions could later affect the taxes on non-monetary gifts such as land.
The tax deductions apply to American money going toward both local and international charities, from the local food shelter to the largest programs. Talks about the issue will continue in an attempt to dissuade Congress from eliminating the deductions or finding another way to possibly encourage donations.
– Kevin Sullivan
Source: Dallas News
Photo: White House