Monterey, CA Charitable Donation Deduction Still In Question For High Income Earners

View From A Non-Profit Serving Carmel, Carmel Valley, Gonzalez, Greenfield, King City, Marina, Monterey, Pacific Grove, Pebble Beach, Salinas, Seaside And Soledad California With just more than a week left in the year, politicians still haven't come to a compromise on balancing the budget, and executives at non-profits are extremely nervous about the potential for cutting the tax exemption for donating money to non-profits.  If it happens, it's likely to be applied only to very high income households.  However, these are just the types of homes which can most afford charitable giving and cutting their tax deduction could have a dire impact on many non-profits.  In 2010, only 32% of Americans itemized their deductions.  Of these, however, 82% (about 38.3 million of us) gave money to charity.  Those deductions totaled a whopping $170 billion in 2010.  The White House Fiscal Commission's 2010 report proposed a 12% non-refundable tax credit for all taxpayers donating to charity, including high-income earnings.  That compares to the current 35% top tax rate.  Let's hope this doesn't happen.  If charitable deductions are phased out for high income earners it will hit food banks, hospitals, schools and myriad other institutions.  If you can afford to give this year, of course, we hope you will give to Hands To Help Seniors!  I am proud that we were chosen by Monterey County Weekly as one of the charities highlighted in their annual Monterey County Gives program.  If you can afford to give, please donate via the below web site as there are matching funds available via this great program.  The way it works is, there is $100,000 in matching funds, and it will be divided pro-rata amongst the participating organizations based on how much they raise.  So please help us stay in the top ten fundraisers by clicking here.