As in past years, Minnesotans will be able to claim a deduction for charitable gifts when filing their state income taxes next year.
The committee of Minnesota lawmakers who iron out the details of the tax plan to raise state revenue has dropped consideration of a House proposal that would have changed the tax deduction to a credit. The Minnesota Council on Foundations (MCF), along with other nonprofit organizations, opposed the proposed change.
As explained by MINNPOST, changing the state’s charitable giving tax deduction would have produced significant revenue for the state, but it posed a worrisome risk to an important revenue stream for charitable organizations.
MCF worked with other nonprofit advocates to ensure the Governor and Senate held fast in opposition to the House proposal. In addition to lobbying at the Capitol, the effort included a guest editorial in the Star Tribune.
But What of U.S. Tax Reform?
While the push for potentially harmful changes to charitable giving law seems to have waned in Minnesota, tax reform proposals are just gaining steam in the U.S. Congress.
The U.S. House Committee on Ways and Means continues to contemplate various tax reform proposals that impact the charitable sector. Last week the committee issued a report proposing a variety of options, including changes to the federal charitable giving deduction.
MCF, in partnership with the Charitable Giving Coalition, issued an immediate response to the report. We are particularly concerned about options that would unravel the charitable deduction and hurt our communities. We explained our concerns in a joint letter to all members of the U.S. House of Representatives.
Contact Your U.S. House Member
MCF is now contacting Minnesota’s Congressional representatives in Washington to explain concerns about the ideas in the working group report and to ask them to oppose changes in the federal charitable giving tax deduction. We encourage MCF members to also contact Minnesota’s members in the House of Representatives to express support for the current charitable giving tax deduction and reject proposed changes.
Do you have questions about state or federal tax reforms affecting the charitable giving deduction? Contact me at MCF.
– Bob Tracy, MCF director of government relations and public policy
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