You may have received a year-end appeal from Tree Trust or another nonprofit organization this year. You may have already given, and if you did, you likely received a thank-you note that included the following line or something similar:
"Your gift is tax-deductible to the extent allowed by law."
Well, this quite possibly could be the last year that your thank-you letter will include that information, because it could be the last year that there is a tax deduction for charitable giving. The federal government is considering eliminating this and other tax deductions as a way to avoid the "fiscal cliff" and increase revenue from high income Americans in order to reduce our country's debt.
If this passes, it will discourage giving. See this article from the Philanthropy Potluck blog by the Minnesota Council on Foundations for more information including statistics on how much of a reduction in giving to expect. One major fact to note is that the vast majority of Minnesotans who give have incomes of under $200,000, and many of those are under $50,000.
Perhaps you don't donate to a nonprofit, but this change
would likely still affect you or your loved ones. If charitable donations are
decreased, many organizations who provide public services will be affected. Do
you ever go to a farmer's market, a library, a church or your local YMCA?
Museums, food shelves, health clinics and hospitals, colleges and universities,
libraries, religious institutions, homeless shelters, theaters, sports
programs, childcare programs, and community gardens could all be affected along
with many other nonprofits. In sum, services provided by nonprofits that
improve the quality of life for Minnesotans every day could be negatively
impacted if the deduction for charitable giving is eliminated or reduced.
How can you help? Email or call your representative or senator and ask them to protect charitable giving. Ask your friends and family to do the same. Share this article on social media to help raise awareness.
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