Donor Base

A pending state budget may hurt a lot of non profit organizations in New York by imposing limits to the amount an individual can claim from charitable donation deductions. The law would affect individual’s making donations who are considered “high earners.”

This law should be a serious concern for non-profit organizations.

Specifically, this law would be applicable to individuals that earn more than $10-million annually. It would reduce the tax-deductible limit of their charitable contributions from 50% to 25%. The concern here is not to aid wealthy Americans from paying taxes. This new law would be of great detriment to many organizations in an already tough time. For example, the New York City Mayor Michael Bloomberg is one of those wealthy Americans who would have their tax incentive reduced for charitable giving–last year he contributed $254-million to cause related organizations. Another reason for concern is that this law is a last-minute proposal, which prevents citizens from speaking out and providing feedback.

The Government is hoping that this move will generate more than $100-million in extra revenue for the state (New York State Division of the Budget).