Tax Bill Would Indirectly Reduce Nonprofit Support, Slash Spending for Youth, Some Fear

Tax Bill Would Indirectly Reduce Nonprofit Support, Slash Spending for Youth, Some Fear

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Nonprofits of all kinds, including youth-serving ones, are feeling “great apprehension,” said Cohen of the National Council of Nonprofits.

Under the tax bill, donations to nonprofits could be reduced by $13 billion, according to researchers earlier in the year at the Indiana University Lilly Family School of Philanthropy.

That’s because far fewer taxpayers would get a tax deduction for donating to charity.

The Tax Cut and Jobs Act nearly doubles the standard deduction for individuals, setting it at $12,000. This would mean that only about 5 percent of taxpayers would itemize their deductions, compared with 30 percent who currently do, Cohen said.

Tax deductions for charitable giving are only available to taxpayers who itemize.

“Nobody is saying people won’t continue to give,” he said. “People will continue to be generous.” But tax incentives cause them to give more.

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Youth Today
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