New York's Nonprofits Fired Up Over State's Plan to Impose New Limits on Charitable Tax Deductions for the Wealthy
Allison Sesso, 212.836.1127
NEW YORK – June 24, 2010 - Governor David Paterson’s latest round of budget discussions proposes to cut allowable charitable deductions for those making at least $10 million by up to 50 percent.
Many charities and nonprofits in New York City are outraged by this last minute proposal to raise revenue, saying it would discourage many wealthy individuals and businesses from wanting to give, especially at a time when not-for-profits are reliant more than ever on charitable donations to survive the recession.
“Many human service organizations throughout out the City are already being forced to do more with less,” said Michael Stoller, Executive Director of the Human Services Council. “Any proposal that could possibly decrease private giving is going to be a disaster for ALL nonprofits in New York City and throughout the State. The State cannot balance the budget on the backs of those in need.”
Human service organizations are already facing over $200 million in proposed cuts that could estimate over 31,000 jobs to the not-for-profit sector in the State. Charitable donations are the alternative means by which many of these organizations are making ends meet to keep programs running and now feel they are being slammed by the State from every direction.
“The Children’s Aid Society relies heavily on private donations to offset the losses in public and foundation funding. Without these important funds, we would be forced to reduce programs that are vital to the community,” said Richard Buery, CEO of The Children’s Aid Society. “The government should be encouraging the public to contribute during this time of need, not using charitable donations as a way to cut the deficit.”
Nonprofits across the State fear that legislators might be planning to come to a close on the budget this weekend and are therefore pleading to their Senators to stop this proposal from going through, which could result in more cuts to human services.
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Human Services Council (HSC) of NYC operates as the intermediary between member organizations and government agencies to confront issues that affect the entire human services sector. HSC’s powerful advocacy, contract reform, information referral, access to technology standardization and disaster preparedness and response services strengthen its members’ ability to operate more efficiently while ensuring the continuity of the services they provide to their communities and the individuals within them. For more information on the Human Services Council, please visit www.humanservicescouncil.org.