Giving locally affects communities and the giver
Maryland Nonprofits President and CEO, Heather Iliff, wrote an op-ed that was recently featured in The Baltimore Sun. Here is just an excerpt. Find the rest of the piece online here.
Maryland estimates show that about 260,000 Marylanders who previously itemized their tax deductions will no longer be able to itemize their charitable contributions. Wealthier donors are not affected by the change as they will be itemizing their deductions as they always have.
New data from Giving USA shows that this regressive change to the charitable incentives has already had an impact on individual giving nationwide. In 2018, the first year the new tax law took effect, individual giving decreased by 1.1% — a 3.4% decline when adjusted for inflation. Contrasting that to an increase in individual giving of 5.7% the prior year, this is a troubling sign.
Some charities in Maryland are already starting to feel the pinch. Individual giving from low and mid-level donors decreased at the Maryland Food Bank and Paul’s Place last year. At the Maryland Food Bank, fortunately, some larger donations helped make up the losses. However, the changes were more painful for Paul’s Place, a nonprofit that relies significantly on middle-income donors. Paul’s Place is already having to cut its budget and reduce its ability to provide services that the community needs. This underscores the importance of local donors looking to organizations right here in Maryland.