Salvation Army: New Tax Plan Takes Up to $13B From Us

AUSTIN, TX — The Salvation Army showing concern that the new tax plan, signed into law by President Trump, will have a negative impact on charitable donations to the organization. They say the reduction of the number of individual and families able to itemize deductions will deincentivize charitable donations, potentially cutting into their services.

"Many people in the Austin area haven't heard how the new legislation will impact the nonprofit community that helps those in need," a press release from the Salvation Army said.

They say the reduction in eligible donors could result in up to $13 billion less in charitable donations. "Currently, many nonprofit donors are motivated by charitable deductions provided in the current tax code," the release said.

The Salvation Army serves tens of thousands of residents of Travis and Williamson counties and 25 million people in every zip code throughout the country, they said in the release. Their plans to expand local services in 2018 require "growing our local donor support," and the last thing they need is "a time for uncertainty."

Two new facilities are under construction in East Austin; the Corps Community Center and the Rathgeber Center for Women and Children. "These facilities will greatly increase our ability to serve those in greatest need, especially vulnerable families living in poverty or homelessness."

Dr. Una Osili, of the Lilly Family School of Philanthropy at Indiana University, said the shift in tax law could “disproportionately affect certain kinds of charities that draw more on the average American family,” the press release said.

This time of year is truly the bread and butter of Salvation Army donations. November and December, they see more money coming in than the rest of the year combined. And, Dec. 30 and 31, they raise more money than all of November.

The Salvation Army says there is a growing number of Austinites among the 40.1 million Americans living in poverty and homelessness.

Included in the tax plan, the elimination of the estate tax also negatively impacts charitable giving. "According to the Giving USA report, bequest giving has more than tripled in inflation-adjusted dollars over the last 40 years," the press release said.

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