“Hospitals, colleges critique Senate plan”: Representing 56 UniRegarding the June 26 news article ted Ways and three United Funds, United Way of North Carolina is closely watching the Senate debate on the $20,000 cap for all itemized deductions.
Local United Ways work with hundreds of nonprofit partners across North Carolina to improve community conditions and create a good place to raise kids, get good jobs and lead good lives. Nonprofits provide more than 10 percent of the jobs in our state and contribute over $38.5 billion to its economy.
The proposal to limit the deductibility of charitable contributions will dramatically and negatively affect these worthwhile organizations as well as their donors. North Carolinians gave $5.9 billion in charitable contributions in 2012, the most recent year for which federal income tax data are available.
The exact cost of the proposed cap is unknown, but the N.C. Center for Nonprofits estimates an overall reduction in charitable giving of $60 million to $900 million. This staggering deficit could cripple more than 10,000 nonprofits in North Carolina, including United Ways, churches, colleges and universities, hospitals and YMCAs.
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We encourage our senators to maintain the charitable tax deduction for all contributions to nonprofits.
Allan Morse and Jan Hayes
Public Policy Committee Co-Chairs, United Way of North Carolina