New Jersey leaders seeking to promote affordability, strengthen the economy and provide tax relief for our state’s residents could advance all of these goals by enacting a state income tax deduction for gifts to charity.
Bipartisan legislation (S-2179, cosponsored by state senators Tom Kean and Troy Singleton) that would allow New Jersey taxpayers to deduct their gifts to qualified charities from their taxable state income passed the state senate unanimously on March 25 and is awaiting committee action in the Assembly. A New Jersey charitable deduction would be good for our state, good for our state’s charities, and good for everyone who relies on them.
New Jersey’s charitable non-profit community touches all of us. Whether providing disaster relief, education, foreclosure assistance, artistic and cultural enrichment, or preserving our natural resources, non-profits fulfill a vital public function that would leave a gaping void were they not present. When the government shut down for a month this past January, wreaking havoc on government workers and other individuals alike, charities stepped up.
New Jersey charities employ nearly 10 percent of the state’s private workforce. These 324,000 individuals – and the organizations that employ them – pay payroll taxes and patronize countless local merchants and businesses. The programs, services, and economic benefits provided by non-profits are critical factors in making New Jersey an attractive place to live, work, or locate a business.
Despite all this, more and more people have been turning to New Jersey charities for help, while the resources charities need to meet this demand have failed to keep pace.