Thursday, August 05, 2010

"Many nonprofit organizations pleaded with New York lawmakers to reject the proposal"

The Chronicle of Philanthropy: "Nonprofit organizations across the country are concerned that a budget plan on the verge of adoption in New York State limiting charitable deductions for 'high earners' could catch on with other cash-starved state governments—and Congress—and cause a loss of significant contributions. The New York Senate last night joined the Assembly in passing a budget plan that has a provision that would apply to the approximately 3,500 New York taxpayers who earn more than $10-million annually and limit the deduction they can claim on their state tax returns to only 25 percent of their charitable contributions, rather than the current 50 percent."

Mayor Bloomberg called the plan "'stupid,' stating that for 'a small amount of incremental revenue to the state, it will discourage subconsciously or consciously others from giving money to charity.'"