President Obama’s proposed budget for fiscal 2015 proposes capping the tax deduction for charitable donations at 28%. It states that the limit would affect only the top 3% of families.
Although there may be little chance of the budget being passed by Congress, nonprofits should nonetheless start thinking about what would happen if tax reform involving charitable deductions materializes. Are there steps your nonprofit could take to minimize the impact? Having a plan is better than being caught “empty-handed.”