ST. LOUIS – Tax professionals and non-profit organizations are asking anyone thinking about making a charitable donation to do it before the end of the year.
That’s because the Tax Cuts and Jobs Act could cause an estimated 31 million Americans to lose a tax break for giving to charities.
Non-profit organizations are worried about funding moving forward.
For years, NCADA St. Louis has provided prevention programs aimed at keeping kids away from drugs, alcohol and tobacco. The non-profit's impact is wide-reaching.
“We serve about 78,000 kids in 280 schools across the St. Louis area,” said Leah Schaefer, NCADA’s Associate Director of Prevention Education.
Charitable donations make up about 10% of NCADA's annual budget. But, if the Tax Cuts and Jobs Act passes as written, non-profit organizations like NCADA worry their funding may take a serious hit.
“The consequences could be devastating. Not just for our organization, but for social service agencies across the country and throughout our region,” said executive director Howard Weissman.
The reasons are complicated, but it basically boils down to this:
“The charitable donations are still important and very valuable to our society. But you won't get a tax benefit any longer if you're not itemizing your deductions,” said Marie Carlie, a CPA and tax partner at BDO in Clayton.
Carlie said under the new law, more than half of tax payers would no longer itemize.
Weissman worries that could mean tough times are ahead for groups trying to help those in need.
“People give for all kinds of reasons. But clearly one reason they give is to take advantage of the charitable tax deduction,” he said.
