Maine nonprofits expect lower donations after charitable contribution cap

AUGUSTA – Maine’s nonprofits are expecting to see a decrease in donations after the Legislature last year limited the tax deduction for charitable giving.

Brenda Peluso, director of public policy for the Maine Association of Nonprofits, told WCSH that the $27,500 tax deduction limit imposed by last year’s budget bill is expected to have a cooling effect on donors.

“I have heard some people say they are going to double down, reduce their contributions to make up for their losses in 2013 in 2014,” Peluso said, according to WCSH. “Our conservative estimate is that the non-profit sector will lose $20 to $30 million a year, which is about 5% of giving.”

Peluso said her association is lobbying lawmakers to repeal the provision, which is forecasted to save the state $15 million annually. The Legislature’s Taxation Committee will go to work on a bill to address the issue on Wednesday.