Nonprofit Groups Try to Block New York Charitable-Deduction Limit
Many nonprofit organizations in New York are deeply concerned they will lose significant contributions from wealthy donors if a pending state budget proposal becomes law. The proposal would reduce the charitable-contribution deductions allowed for individual donors who are “high earners.”
Gov. David Paterson and the state legislature are in a bitter battle as they try to finalize a budget during the bad economic times, but they apparently have agreed on a proposal that would allow the approximately 3,500 New York taxpayers who earn more than $10-million annually to deduct on their state tax returns only 25 percent of their charitable contributions rather than the current 50 percent.