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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.
Nonprofits use private charitable contributions to provide essential services such as food, education, health care, youth programs, arts and culture, child care, services for seniors, land conservation, and affordable housing.
At a time when 60% of North Carolina nonprofits aren’t able to meet basic needs, any decline in charitable giving will take away from nonprofits’ ability to serve communities and will increase the number of North Carolinians relying on government services.