Efforts to cap the charitable deduction in New York are successful.
Update:
New York Governor David A. Paterson has signed into law a revenue bill passed by the state’s legislature that limits charitable deductions for wealthy residents. The bill includes a provision limiting the deduction for those who earn more than $10 million annually to only 25 percent of their charitable contributions, rather than the previous 50 percent. This affects approximately 3,500 New York taxpayers and would be in effect for three years (2010-2012).
For background, articles and resources click “continue reading” below.
Continue reading...
Further Reading
The Chronicle of Philanthropy reports that New York Governor David A. Paterson has signed into law a revenue bill passed by the state’s legislature that limits charitable deductions for wealthy residents. New Yorkers with state-adjusted gross incomes above $10-million annually—about 3,500 taxpayers— are now able to write off only 25 percent of their charitable contributions on their state income taxes rather than the previous 50 percent.
“The last thing on earth charities need is a disincentive from the government to people who are their donors, especially their biggest donors,” says Abigail Disney, New York philanthropist and grandniece of Walt Disney.
She makes a stark prediction: “New York is a leader in philanthropy, so what New York does I can’t imagine other states won’t follow,” she said, adding: “Congress could go looking at it, too.”
Read full coverage here.
Last night, the New York Senate joined the Assembly in passing a budget plan that included a provision limiting the deduction for those who earn more than $10 million annually to only 25 percent of their charitable contributions, rather than the current 50 percent. This affects approximately 3,500 New York taxpayers and would be in effect for three years, including the current 2010 tax year. Governor David Paterson is expected to sign the budget into law.
ACR and The Philanthropy Roundtable joined efforts with other national nonprofit organizations to express opposition to this measure. ACR is also concerned that this may signal a trend we’ll see in other states and in Washington.
For full coverage, visit the Chronicle of Philanthropy.
Click here for additional background on this issue.
