HELENA – Local nonprofit organizations are worried about potential changes to the federal tax code.
One provision being considered for a proposed tax overhaul supported by Republican Congressional leaders would increase the standardized deduction amount for taxpayers, potentially reducing the need for itemized deductions for things like charitable giving.
Nonprofit officials say such a change could mean up to an $8.1 billion loss to charities nationwide each year.
“We don’t know who can pick up the slack,” says Alison Munson, President and CEO of United Way of the Greater Lewis and Clark Area. “I mean right now with Federal budget cuts and we know with State budget cuts are right around the corner, those nonprofits are already being affected. If we don’t have donors to support us, then we can’t continue to exist and serve the people that are so important in our community.”
GOP members of the House and Senate say they want to pass their tax reform bill before the end of this year.