Charitable Deduction

Expanding Charitable Deduction Could Help Nonprofits and Businesses

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.

 

 

Charitable Giving Cap

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.  

Potential Tax Increases

Potential Tax Increases from Not Conforming on the IRA Charitable Rollover

In 2013 and 2014, North Carolina decoupled from the extension of tax-free distributions from IRAs to public charities (the IRA charitable rollover). The 2016 IRC Update legislation (S.726) would decouple on this provision again for 2015 and future tax years. This tax change creates a significant tax increase for some retired North Carolinians who made charitable contributions from their IRAs.