Change to Standardized Deductions Makes This the Final “Tis’ the Season” for Tax Deductible Giving for Groups That Care for Kids, Seniors, Disabled
Local non-profit organizations that provide critical services will see fewer end of year donations once Congress passes legislation to rewrite the tax code, Dane County Executive Joe Parisi said today. Given the hundreds of partnerships between county government and organizations that care for vulnerable citizens around the clock, creating disincentive for individuals and groups to make tax deductible contributions puts future funding of key services in question. A drop in donations and corresponding service cutbacks could be felt as soon as next year.
“Dane County’s Department of Human Services alone has 300 different contracts with entities that depend upon charitable giving as a key means of paying for the help they give to people in our community,” Parisi said. “Eliminating the tax deductible incentive makes the always difficult process of fundraising even harder, making it even tougher for some of these groups to survive.”
Making it harder for non-profits to operate means local governments across the country will see increased workloads and new budget pressures Parisi said. That will result in either service cuts or further demand for local tax dollars to make up the difference and in turn higher property taxes.
A recent analysis from the Tax Policy Center projected that nationwide charitable giving would decline up to $20 billion in 2018 alone after the Republican tax bill goes into effect.
“In Dane County, non-profits like Operation Fresh Start, the United Way, and hundreds of countless other amazing groups just like them help people of all ages, every day,” Parisi said. “These groups work with young people to develop employment skills, get those who face homelessness back on their feet, and provide front-line care for kids who are victims of abuse and crime. Jeopardizing their funding hurts local taxpayers and our economy, makes our communities less safe, and hurts real people and families facing adversity.”