Charitable Tax Deduction Needs to be Preserved
HB240 – currently being considered in Dover – would eliminate the charitable deduction option. At a time when dollars for the charitable sector are being squeezed more than ever, we need to incentivize giving anywhere and everywhere we can.
We are also fully aware that the state’s budget deficit requires many difficult choices. We simply do not believe that this should be one of them.
Local accountant and nonprofit expert Pete Kennedy had this to say about the proposal in the Delaware News Journal.
“I think of the charitable sector as an ecosystem. Support comes from several sources; government grants (already under siege), program-related income and private contributions. As with any ecosystem, there are hidden dynamics – if one piece is changed, there are often unforeseeable consequences. The individual nonprofit cobbles together its funding, prepares its budget, hires or lays off, expands or contracts and does the best it can. The support is directly related to the level of services provided. There are already societal needs going unmet due to lack of funding. If the capacity to provide services is reduced, who will step in?”
I echo Pete’s thoughts. We urge the legislature to reconsider this proposal, and urge readers to weigh in with their representatives in Dover.