Expert: New tax bill will discourage charitable donationsPosted: Updated:
Experts say the newly passed tax overhaul bill will discourage charitable donations, which could affect nonprofits in Westchester and the Hudson Valley.
The Nyack Homeless Project is a nonprofit that helps keep thousands warm during the bitter cold winter. Organizer Joe Hazucha says it services about 8,500 people in Rockland County.
The charity is run purely by volunteers, which is why Hazucha says every donated penny counts.
"Financial donations are essential," he says.
The new tax plan limits the number of people who can itemize their taxes, which means those taxpayers will be unable to deduct charitable contributions.
"I would say we are going to struggle," says Hazucha.
His nonprofit is not alone. News 12 spoke with Alana Sweeny, with the United Way of Westchester and Putnam, a nonprofit that provides a number of community services, including helping those living near the poverty line connect with resources.
"We raise about $8 million in Westchester and Putnam," she says. "We are looking at about a $400,000 drop. That's significant."
Hazucha hopes Hudson Valley residents will still give even if they don't get a tax incentive.
"There are a lot of people with good hearts, and I count on the good hearts," says Hazucha.
Some members of Congress have called for corrections to the tax bill in early 2018.