KY Nonprofit Sector's Position on the Proposed Cap on Itemized Deductions |
Governor Beshear’s Blue Ribbon Tax Commission recently submitted its recommendations regarding revision of Kentucky’s tax code. One of their recommendations is to cap itemized deductions at $17,500. This recommended cap is projected to generate approximately $350 million in revenue. However, this recommended cap also includes the deduction for charitable giving.
The average total for itemized deductions in Kentucky in 2010 was $20,782 – meaning with the proposed cap of $17,500, $3282 would no longer be deductible. In 2010, the average charitable deduction for Kentuckians was $4145 – $863 more than this amount that would be no longer deductible.
Note that these are merely averages; some donors decide to give much more and the tax incentive is often a factor in making their decision.
We heard loud and clear from nonprofit leaders in our recent survey that a cap on itemized deductions that included a cap on deductions for charitable giving would negatively impact the work of nonprofit organizations. Now, it’s important that we hear from you again - what position should we as a nonprofit community take on this important issue?
The average total for itemized deductions in Kentucky in 2010 was $20,782 – meaning with the proposed cap of $17,500, $3282 would no longer be deductible. In 2010, the average charitable deduction for Kentuckians was $4145 – $863 more than this amount that would be no longer deductible.
Note that these are merely averages; some donors decide to give much more and the tax incentive is often a factor in making their decision.
We heard loud and clear from nonprofit leaders in our recent survey that a cap on itemized deductions that included a cap on deductions for charitable giving would negatively impact the work of nonprofit organizations. Now, it’s important that we hear from you again - what position should we as a nonprofit community take on this important issue?