On March 4, the N.C. House of Representatives overwhelmingly approved an amendment to a bill (S.20) that would have protected the state tax treatment of charitable contributions that seniors make from their individual retirement accounts (IRAs). Thanks to Rep. Rick Catlin (R-New Hanover) for sponsoring the amendment, which passed by a 109-7 vote.
In 2011, the N.C. House of Representatives overwhelmingly passed H.B. 886, which would bring the North Carolina corporate tax deduction for charitable contributions into conformance with federal law. This would help more small businesses contribute to nonprofits. The N.C. Center for Nonprofits encourages the N.C. Senate to pass this bill during the 2012 short session.
Why Is Nonprofit Tax Exemption Essential for North Carolina?
1. It protects taxpayers.
- Nonprofits provide essential services that government would have to provide otherwise. Tax exemption costs much less than the cost of government having to provide the services itself.
- Nonprofits provide public benefits in exchange for tax exemption.
- Organizations may choose not to locate in counties or states that do not grant tax exemption. This is a potential loss for the people and economy in those locations.
Below is an excerpt. Download the full 2-page PDF at bottom.
Capping State Itemized Deductions Would Reduce Charitable Giving In North Carolina
North Carolina’s nonprofit sector is concerned that the $20,000 cap on itemized deductions in the Senate budget would harm communities across the state by reducing charitable giving.
North Carolinians gave $5.9 billion in charitable contributions in 2012, the most recent year for which federal income tax data is available.
Senate Tax Proposal
The Senate tax plan, which was passed as part of the Senate's version of the state budget for FY2015-17, would have made three changes that would harm nonprofits: