Some charities worried about loss of tax deductions

WEST SPRINGFIELD, Mass. (WWLP) - Some charities are worried that tax deductions for donations could end up on the chopping block as Congress tackles the fiscal cliff.

The Obama Administration has proposed capping all itemized deductions at 28% for certain taxpayers. Meanwhile, a bipartisan debt reduction panel has proposed eliminating the charitable giving deduction altogether, and replacing it with a tax credit.

The Charitable Giving Coalition says that studies show many Americans would give less without the deduction.

Yet some are hopeful that won’t be the case.

Savers is a chain of thrift stores that partners with nonprofit organizations. Jairo Perez of the West Springfield store says he thinks people will still be motivated by the desire to help members of the community.

"Even if they don't get the tax receipts, they would still donate, because I feel like they like what the donations do for Big Brothers and Big Sisters, and they get coupons and we give out baskets,” Perez said.

Nonprofits that rely on monetary donations are expected to hurt the most if changes are made to charitable tax deductions.