Some worry new tax law will reduce college donations

The limits on deductions are part of the new tax law Congress passed on New Year’s Day.

Charities and nonprofit organizations are worried that new limits on tax deductions for high earners this year will hurt donations—including alumni giving—just as charitable giving is starting to rebound from the depths of the recession.

Experts doubt the new limits on deductions will have much impact on giving, but some major nonprofit organizations fear they’re a sign that the charitable deduction is no longer sacrosanct on Capitol Hill, just as Congress is promising a broader effort later this year to overhaul the tax code.

The limits on deductions are part of the new tax law Congress passed on New Year’s Day. They reduce the value of all itemized deductions for individuals making more than $250,000 and married couples making more than $300,000. Advocates are concerned the limits will reduce the tax incentive for people to make donations to charities and nonprofits such as colleges, religious institutions, and groups that help the poor.…Read More

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