California lags other high-tax states on state and local deduction workaround

But the plan also could increase contributions if a person who previously gave $200 now gives $10,000 to get a tax credit. In this case the charity would be ahead by $800.

The California Association of Nonprofits has endorsed the bill. Jan Masaoka, the association’s chief executive, said the former scenario is a risk, but “we hope that people who are making donations (to get a tax credit) realize what they are doing” and would make sure the charity is not worse off.

A bigger concern, she said, “is that these various workarounds will confuse the difference between making a donation to a nonprofit for the public good and making a donation that is really a tax workaround. We are always concerned about any kind of confusion around the word donation.”