Originally posted in the Vacaville Reporter: The Food Bank of Contra Costa and Solano receives nearly half of its funding from individuals. We live in a generous community where people support the cost-effective work we do.
The Food Bank is concerned that one of the options discussed in the “fiscal cliff” negotiations has been to limit the tax deductions people can take when they donate to nonprofit organizations such as the Food Bank. Donating to faith communities and nonprofit organizations is part of our social culture, but I worry that the support people provide will be limited if the tax deduction changes.
As an example of the changes being debated, the recently passed compromise bill enacted Congress by restored a deduction that allowed those over 70 1/2 years old to donate IRA funds they must withdraw. The restored law says that if a donation of more than $100,000 is made directly to a nonprofit organization before Feb. 1, the roll-over is tax-deductible. After that, this option will not be available, so the tax-deductible motivation will be gone.
Other options under consideration have focused on limiting the total amount of deductible donations people can give or limiting the amount people can deduct based on their income. I understand the budget issues our country faces, but anything that discourages people from giving to charitable organizations raises concerns.
Nonprofit organizations do incredible work with limited funds. Faith communities and nonprofits are able to respond to concerns in local communities with speed and focus. We are able to carry out the work donors want to see done because we can directly respond to those who give us the funds we need. The issues we are facing today make collaboration between nonprofits and government necessary. This is not the time to limit the ability of the community to support organizations addressing the issues they see in the community.
To learn more about how you can help take action against these changes, contact Lisa Sherrill at the Food Bank: (925) 676-7543 ext. 206 or email@example.com.