Most charities in the United States rely on donations as their primary source of income. When donations are made to a non-profit charity, they become a tax deduction to the person or corporation giving the donation. Subsequently, many people only give donations because of the tax deduction they receive. This can be seen in the fact that many non-profit charities receive a third to half of their annual donations in the month December as people begin to think about income taxes and the need for deductions.
Now, those tax deductions are in danger of being reduced or disappearing all together and if they do, a large percentage of donations will also disappear resulting in many a charity having to close their doors and it all has to do with the infamous fiscal cliff.
One of the economic plans being put forth by Democrats calls for the reduction of allowable charitable tax deductions. Others are proposing a cap on the amount of allowable charitable tax deductions and yet others are abdicating dropping all tax deductions for charitable donations.
Any of these plans will have a drastic impact on many non-profit charities. Reducing the deduction amount or placing a cap on allowable deductions will hurt many charities. Dropping all tax deductions will be devastating to non-profit charities resulting in many of them no longer being able to afford to help those in need. Hundreds and thousands of charities will cease to exist.
But don’t think the Democrats are alone on this idea. The plan put forth by House Speaker John Boehner last week also called for a reduction in the tax deductions for charitable giving. In this respect, his plan was no different than what the Democrats are considering.
Did you know that in a socialist nation that all charity comes from the government, not from people and organizations? Kind of fits in with the rest of the socialistic changes Barack Obama has been making, doesn’t it?08
If I still worked for a non-profit charity, I would be getting very nervous right now, especially with both sides of the table talking about reducing or eliminating tax deductions for charitable donations. Will non-profit charities have to start laying off staff or cutting their outreach? For many, their future does not appear to be very bright as we enter into the Christmas holiday season.