Charities worry new tax law will reduce donations
WASHINGTON (AP) — Charities and nonprofit organizations worry that new limits on tax deductions for high earners will hurt donations just as charitable giving is starting to rebound from the depths of the recession.
Experts doubt the new limits will have much impact on giving, but some major nonprofit organizations fear they’re a sign that the charitable deduction is no longer sacrosanct on Capitol Hill, just as Congress is promising a broader effort later this year to overhaul the tax code.
The limits on deductions are part of the new tax law Congress passed on New Year’s Day. They reduce the value of itemized deductions for individuals making more than $250,000 and married couples making more than $300,000. Nonprofit organizations are concerned the limits will reduce tax incentives for people to make donations.