Site Registration | FInd a Copy | Event Calendar | Site Map | Search the Site
The Voice of the Black Community


‘Fiscal cliff’ threatens nonprofit donations
Tax deductions could take hit with changes
Published Thursday, December 13, 2012 7:22 am
by Stephanie Carroll Carson, N.C. News Service

RALEIGH – One unintended consequence of fixing the "fiscal cliff" could be a reduction in the tax incentives to make nonprofit donations.

Capping the amount of itemized deductions individuals can claim at around $17,000 is one solution being tossed around in Washington to help solve the budget shortfall. In North Carolina, that amount would just cover the average fixed-cost deductions, including mortgage interest and state taxes paid, and would leave little room for nonprofit contributions.

David Heinen, director for policy and advocacy for with the North Carolina Center for Nonprofits, says that will have a big impact on organizations and consumers.

“It is very clear that if the tax incentives go away, it's going to significantly reduce contributions to nonprofits from individuals,” he said.

If Congress fails to overcome the fiscal cliff by year's end, automatic cuts to programs would take place, including a $13-million cut to Head Start programs in North Carolina. In addition, there will also be significant cuts to programs because less public money would be available.

The cuts come as nonprofits are being asked for more help from their communities. Heinen says the workload at state nonprofits has increased almost 18 percent. Sylvia Oberle, who heads Habitat for Humanity of Forsyth County, says the issues caused by a reduction in services by nonprofits have a tendency to multiply.

“While we may still have the wherewithal to build houses for families, their own incomes and the services that they receive can be cut back,” she said. “It really is a trickle-down effect.”

According to the North Carolina Center for Nonprofits, nonprofits employ 11 percent of the state workforce, and cuts to nonprofit budgets would put their jobs in danger, as well.


Leave a Comment

Send this page to a friend

Upcoming Events

read all

From the Garage: Street Rides of NASCAR Stars

From the Garage: Street Rides of NASCAR


Lupus Foundation Support Group

This group meets the second Wednesday of each


FREE Jazz Lab Short Sessions Featuring John Brown

C3Lab, Charlotte’s creative hub, featuring

Latest News

read all

Former JCSU coach Bob Moore made his mark rebuilding

Architect of program turnaround dies at 73

Barkley debuts in Charlotte Ballet's 'Fall Works'

New dancer brings energy, athleticism

Four Stacks for flavor

Quartet blends for unique  taste