Dec. 31, 2012 may be the last date donors can make donations with tax deductibility as they know it now
Charities Hold Their Collective Breath Wondering if They’ll Go Over the Cliff
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ALBUQUERQUE, N.M., —All over the country, charities are holding their breath and hoping they don’t get pushed over the fiscal cliff and possibly die a slow death. Joy Junction, New Mexico’s largest homeless shelter, is no different.
Most proposals to deal with the fiscal cliff, by both Democrats and Republicans, reduce tax deductibility for charitable giving in one way or another. That means charitable giving could become less attractive to a great many Americans in 2013.
Joy Junction Founder and CEO Dr. Jeremy Reynalds said, “This is a nerve wracking time for us. I met with a few long time friends of Joy Junction earlier this year who said if their charitable tax deduction changes, they will be forced to cut back on their giving to us and other charities. With an increasing need, that’s downright scary-in fact, potentially tragic.”
Many charities have already had to cope with a deep recession that has cut into their donation dollar. Some didn’t survive.
Some of those left could become casualties by further cuts brought on by changes “necessitated” as lawmakers argue as to how to “fix” the problems at the edge of the fiscal cliff.
Earlier this year, Reynalds met with some of the New Mexico Congressional Delegation staff in Washington as part of a brief lobbying effort by some members of the Association of Gospel Rescue Missions, of which Joy Junction is a long time member.
Reynalds said he urged congressional staff to encourage their bosses not to change the charitable tax deduction.
Others charities with no experience raising money in the private sector that depend on government funding may find cuts in those programs cause them to die a quick death.
Fortunately, Joy Junction does not receive government funding from any level. Most donations come from individuals, and the rest comes from churches, businesses and organizations.
However, the donations from these sources seem most at risk if lawmakers tinker with the deductibility of charitable donations.
Only time will tell, but the one sure thing that seems certain, is that Dec. 31, 2012 may be the last date donors can make donations with tax deductibility as they know it now.