American Jobs Act of 2011

Colorado Nonprofit Association Opposes Changes that Weaken the Charitable Deduction and Encourages Equal Benefits for Nonprofits

On Sept. 20, Colorado Nonprofit Association sent a letter to Colorado’s members of Congress encouraging them to oppose changes that weaken the charitable deduction and to ensure nonprofit employers benefit equally from the American Jobs Act of 2011.

The White House has proposed limiting itemized deductions to 28 percent for taxpayers earning $200,000 and up. Since tax incentives are important for motivating charitable giving by wealthier donors who itemize their deductions, this change would reduce charitable giving and revenues needed for nonprofits to create more jobs and increase wages.
While the American Jobs Act contains valuable incentives to help employers create jobs, nonprofits would enjoy the same benefits as other small businesses for most, but not all of the provisions of the legislation. The letter also encourages Colorado’s members of Congress to ensure that nonprofits benefit equally.

  • Click here to read the Sept. 20 letter (PDF).
  • Click here to read a summary of the effect of the American Jobs Act on nonprofits from Independent Sector.
  • Click here to read the White House summary of how the American Jobs Act of 2011 impacts Colorado (PDF).
  • Click here to view Independent Sector’s ad in the July 18 issue of POLITICO on the charitable deduction, which Colorado Nonprofit Association signed (PDF).

For more information on federal discussions of the charitable deduction:

  • Click here to read the Congressional Budget Office (CBO) report on the charitable deduction(PDF).
  • Click here to read Independent Sector’s analysis of the CBO report (PDF).

Colorado Charitable Contribution Subtraction for Non-Itemizers

Colorado taxpayers who make charitable contributions and do not itemize their deductions on federal returns may still subtract part of these contributions from state income taxes. Non-itemizing taxpayers can subtract amounts exceeding $500 in a year from their state tax liability.

Click here here for the Colorado Department of Revenue guide to the charitable contributions subtraction (PDF).