Establishment of Charitable Funds
Wednesday, May 16, 2018
The 2018-19 State Budget updated the Education Law and Real Property Tax Law, giving school districts the option to establish charitable funds and authorize tax credits with the intention of allowing property owners to lower their tax liability and increase deductibility.
NYSASBO staff developed a reference presentation to assist school districts in understanding how to create charitable funds.
To view the presentation click here.
UPDATE: IRS Ruling
The IRS issued proposed regulations that would undercut state efforts to mitigate the negative impact of the $10,000 limit on property tax deductions imposed by the Trump Administration.
The new draft regulations released August 23, 2018 caps the amount that a charitable donation in lieu of property tax payments to 15% of the donation. New York State's charitable fund option allowed property taxpayers a tax credit of up 85% of the charitable donation. The proposed regulation can be found here