Kean/Singleton Legislation to Support Charitable Giving Advances

Measure Creates Tax Deduction for Contributions to NJ Charities During COVID-19 Pandemic

TRENTON – The Senate Budget & Appropriations Committee has advanced legislation sponsored by Senate Republican Leader Tom Kean and Senator Troy Singleton that would give a boost to charitable organizations that are hard at work serving communities across New Jersey during the COVID-19 pandemic.

“We have watched as local non-profits stepped up to feed their communities and provide every kind of support imaginable to New Jersey families impacted by this unprecedented public health and economic crisis,” said Senator Kean (R-Union/Somerset/Morris). “Those dedicated organizations that serve so many New Jerseyans have not been immune from the financial hardships of this emergency. We’ve seen time and again that non-profits often face the greatest challenges raising the funds they need to operate when the need of vulnerable communities is greatest. It’s imperative that we support their efforts by boosting donations in a way that is extremely cost efficient.”

The legislation, S-2360, creates a New Jersey Gross Income Tax deduction for charitable contributions that are made to certain New Jersey-based charitable organizations during the tax year of the COVID-19 pandemic.

The bill provides that the amount of the deduction is limited to $20,000 for joint filers and heads of household and $10,000 for single filers, married taxpayers filing separately, or surviving spouses.

It has been estimated that every dollar in lost tax revenue to the State due to the deduction would result in approximately $30 of donations to charitable organizations that serve children, families, and seniors across New Jersey.

“Need doesn’t go away during a pandemic, it intensifies. During these challenging times, New Jersey’s charities are working harder than ever to help countless people and families who are struggling,” said Senator Singleton (D-Burlington). “By allowing donors to write-off charitable contributions on their taxes, we hope to boost the number of people who financially support these organizations. The help is needed now more than ever.”

Kean has been pushing for more than a decade to create the tax deduction on a permanent basis.

“New Jersey’s non-profit organizations have proven themselves time and again to be worthy of both our awe and support,” added Kean. “We watched as local community organizations across the Garden State rushed forward to support our residents’ needs after 9/11, Superstorm Sandy, and today as we struggle with COVID-19. Let’s make a smart investment in the non-profits that give so much back to New Jersey.”