Nonprofits project lower donations after tax change
The Maine Association of Nonprofits estimates that a cap on tax deductions to nonprofits passed last year will reduce overall donations by up to $30 million.
Brenda Peluso, director of public policy for the nonprofit association, told WCSH that some donors completing taxes this year are now hearing about the $27,500 cap on deductions for charitable giving. While it’s too early to know exactly what the law’s impact on charitable giving might be, Peluso said the group estimates the nonprofit sector will lose $20 million to $30 million a year in donations. The group is lobbying legislators for a change to the law that was passed as part of a plan to close a $37 million budget gap.
State officials estimate the cap on deductions brings in around $15 million in revenue.
The news station reported the Legislature’s Joint Standing Committee on Taxation is due to discuss a related bill Wednesday.
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