Now that the U.S. Congress has passed a Tax Reform plan that will re-write the nation's tax code, some charities are worried the impact could be a reduction in donations. The reason - fewer people will have the opportunity to claim charitable donations on their tax return which increases the likelihood that they will be less motivated to remember charities.
Under the Tax Reform plan, the standard deduction will double meaning many Americans will no longer be itemizing their tax returns and unable to use charitable donations.
The United Way of Buffalo and Erie County said a study estimated that 30 million Americans will no longer itemize their tax returns starting in 2019. (The changes will not affect how you file your taxes in January 2018). With so many fewer people itemizing, the United Way fears there could be a $19 million loss to Buffalo-area charities, churches and community groups.
Other charities, like Goodwill Industries of WNY, are not worried about material donations but wonder how corporate donations will be affected due to decreasing tax rates.
The Salvation Army tells 7 Eyewitness News it is very concerned about a potential loss in donations especially at the end of the year. Those donations make up a large part of the Salvation Army's budget to provide services to the needy.
7 Eyewitness News Reporter Ed Reilly has more in his report.