MASON CITY, Iowa (AP) - Multiple area churches and charities are hoping the new tax bill, passed by Congress and President Donald Trump last month, won’t negatively impact contributions this year.
Some feel it’s too soon to say what its impact may be, including United Way of North Central Iowa. Jen Arends, community impact director of the organization, said supporters’ generosity is a major component of how United Way runs 32 counties in its eight-county coverage area, including Cerro Gordo.
Arends added other financial circumstances, outside of how people benefit from writing off charitable giving come tax season, can cause changes in donation levels.
“It depends, somebody may get more back in tax refunds but other things may impact what they give charitably,” she said. “They may have a medical emergency or their furnace is going out, or stuff like that.”
Along with charities, several churches in Mason City rely on donations for the needy and other services, the Globe Gazette reported . The Rev. Chuck Kelsey, pastor at First Congregational Church of Christ, doesn’t think the bill should have much of an impact on his church.
“I really don’t think the tax bill will impact weekly giving … It might impact larger gifts, however, most don’t give to ministry for a tax-break,” Kelsey wrote in an email. “The faithful give because they want to make a difference in the lives of others.”
Ron Stein, pastor at First Baptist Church, believes the reason his congregation gives is purely for religious purposes.
“I think people who give to God is different to people who give for a tax deduction,” Stein said, later adding: “I believe they give because they know the benefit of giving to God.”
Some of the key changes to the tax bill include doubling the standard deduction for single-payer and families, along with the elimination of many itemized deductions.
Melissa Schoneberg, executive director of Habitat for Humanity North Central Iowa, said her organization will be tracking how these changes impact giving in the coming year.
She added she does have concerns those who itemize deductions might not give as much this year - but hopes people continue to give to benefit their community.
“I think there are a lot of people who do want to support organizations,” Schoneberg said. “But nonprofits are nervous because those that itemize tend to give more . I’ve been with nonprofits for over 15 years, but what I’ve seen is it does save the community and taxpayers money . especially in the long run, because it helps people become more self-sufficient.”
For Schoneberg, however, and several others, it’s still too soon to predict what will happen. Lt. Kenyon Sivels, of the the Salvation Army in Mason City, didn’t want to “speculate” too much about the tax bill’s impact
Sivels added one of the Salvation Army’s main goals is to educate the community on its mission, and not get bogged down in how tax deductions impact giving.
“There are folks who have the capacity and do choose to donate significant amounts of money,” he said about people who give to the Salvation Army. “And there are folks who can only donate a few dollars . but we’re thankful for both of those givers.”
Arends, of United Way, said the generosity of North Iowa should support charities that rely on donations to operate, regardless of tax bill changes.
“We really continue to operate under the lens we’re doing good work, and as long as we’re doing good work, people are going to support it,” she said about United Way. “Although the economy may be variable, the generosity of North Iowa is pretty constant.”
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Information from: Globe Gazette, http://www.globegazette.com/
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