The nonprofit sector is an important part of strong, thriving communities.
The charitable tax deduction is part of nonprofit organizations' ability to be successful in its unique role; distinct from, and frequently in partnership with government and for-profits. The charitable deduction has been in place since 1917, providing a tax deduction for community members who contribute to nonprofit organization. It is available to any taxpayer who itemizes on their tax return.
Let's celebrate the centennial of the charitable deduction by making sure we don't go backwards. In fact, our goal is to extend the charitable deduction to all taxpayers, regardless of their itemizer status.
New tax structures hurt charitable giving
Late in 2017, Congress passed new legislation that reduces tax incentives for charitable giving nation wide.
By doubling the standard deduction and changes tax brackets, the number of itemizers drops from over 30 percent to only 5 percent of filers, who have the highest incomes. We know that many people will still make donations to 501(c)(3)s or religious organizations of their choice, various estimates predict charitable giving nationwide could be reduced by around $13 billion annually.
Supporting a universal standard deduction
The state of Minnesota provides a charitable deduction on state taxes for all filers. MCN believes this is an important part of our state code, and that the charitable deduction should be available to all taxpayers.
Help EXPAND the charitable deduction that supports your mission by contacting your Senators and Representatives.
Tell them about your organization, its values and mission, and how important it is to have this giving incentive. Encourage them to extend the charitable deduction to all taxpayers, so that those who take the standard deduction have equal access to this opportunity to invest in their community.