New Jersey Charitable Giving Incentive

NJ Charitable Deduction Bill Advances in the Legislature

Updated June 25, 2019

Legislation that would create a state-level income tax deduction for charitable donations is advancing in the Legislature. On March 25, 2019, the New Jersey Senate passed by a 39-0 vote bipartisan legislation that would allow New Jersey taxpayers to deduct charitable contributions from their state income taxes. The Center for Non-Profits strongly supports this bill and is working hard to promote its passage.

S-2179 (Kean/Singleton)/would permit a taxpayer to deduct from NJ income taxes the amount of charitable contributions made to a “qualified New Jersey-based charitable organization” equal to the amount that is allowable as a charitable deduction under federal income taxes. A taxpayer need not itemize on their federal return in order to claim the state deduction. A “qualified” New Jersey-based organizations is defined in the bill as:

a charitable organization that is registered pursuant to the "Charitable Registration and Investigation Act," P.L.1994, c.16 (C.45:17A-18 et seq.), or an organization that is exempt from the registration requirements of that act pursuant to section 9 of P.L.1994, c.16 (C.45:17A-26), and that maintains an office, employs persons, and provides services in this State.

S-2179 has been referred to the Assembly Budget Committee. Similar legislation, A-5464, is also awaiting consideration by the Assembly Budget Committee.

The Center has long supported the creation of a state-level giving incentive in New Jersey. For years, New Jersey charities have been grappling with the mounting pressures of skyrocketing demand for services while resources have failed to keep pace (as outlined in our recent survey report). The federal tax law has compounded the difficulties by putting the federal charitable deduction out of reach to all but an estimated 10% of taxpayers and capping state and local tax (SALT) deductions, affecting the ability of many New Jerseyans to give.  

S-2179 would provide desperately needed relief by allowing New Jersey taxpayers – whether or not they itemize – to deduct contributions made to New Jersey-based organizations that have an office and at least one employee. The impact that it could have for resource-stretched charities and all who need them, and on New Jerseyans hit hard by the federal tax law, would be significant.  Read our full position statement here.

We are working vigorously with advocacy partners to advance this bill and to marshal champions and support in the Assembly.  We will also continue to advocate for the federal universal charitable deduction legislation that has recently been reintroduced in Congress. 

For more information or to become involved, email Doug Schoenberger at doug @ njnonprofits.org or Linda Czipo at lczipo @ njnonprofits.org (remove spaces in the email address before sending).

Watch your email, our social media feeds, and this website for updates and action alerts.

 


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