ProJo: My Turn: Anthony Maione: Save the charitable deduction

By Anthony Maione

As we enter the holiday season, nonprofits everywhere are finding opportunities to thank donors for their support. At the same time, the Senate Finance Committee is considering comprehensive tax reform legislation that could cause significant reductions in charitable giving in the future.

According to the Joint Committee on Taxation, the Senate tax reform bill technically preserves the “charitable deduction,” but because of the standard deduction increase, 31 million taxpayers who currently claim the deduction will lose it. Experts calculate that would cause $13 billion in lost private donations to charities.

In Rhode Island, according to IRS data, 144,280 people claimed a charitable deduction in 2015, accounting for $466.2 million A projected loss of just 5 percent resulting from tax reform would mean $23.3 million less to fund hospitals, the arts, and universities, not to mention Rhode Island food pantries, homeless and domestic violence shelters, job training programs and services for children and the elderly. Such a loss would be devastating for Rhode Island's nonprofit community, which is only just beginning to emerge from the 2008 recession.

To view the complete article, visit Providence Journal

Courtesy of Providence Journal