Charities nervous new tax plan will drastically reduce donations - KMOV.com

Charities nervous new tax plan will drastically reduce donations

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Flanked by Speaker of the House Paul Ryan and Rep. Kevin Brady, President Donald Trump speaks about tax reform legislation in the Cabinet Room at the White House. (Getty Images) Flanked by Speaker of the House Paul Ryan and Rep. Kevin Brady, President Donald Trump speaks about tax reform legislation in the Cabinet Room at the White House. (Getty Images)

ST. LOUIS (KMOV.com) -- Tonight as many Americans try and understand the new Republican tax plan, some charities are having big concerns it could cause them to lose donations.

Millions of Americans are expected to take advantage of the new standard deduction that's been doubled, meaning fewer people will itemize their deductions.

Some charity organizations worry many Americans won't donate because they won't benefit from the charitable tax break.  

However, some say this won't affect the way people give.

"I would tell them to look at the 1985 tax law that took away, took away, the ability to deduct it on your tax return, and donations went up," said Mark Steber, Chief Tax Officer at Jackson Hewitt.

Charities like the Red Cross, Salvation Army and United Way all depend on small contributions.  

The United Way expects to lose up to $450 million a year under this new plan.

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