SB-1485 is a bill proposed by California State Sen. Morell (R- 23rd District) aimed at improving the impact of non-profit charities that often work in tandem with government programs to improve private citizens’ lives.
SB-1485 accomplishes this service by creating a tax credit of up to $500 for individual filings and $1000 for joint filings for donations to 501(c)(3) located in the state of California and not suspended by the Secretary of State or the Franchise Tax Board.
By having the tax-payer fill out paperwork designating an approved non-profit organization this bill seeks to shift aid from government programs to private programs. Overall the concern from those opposed is that this could result in a $4billion loss in general funds revenue which would have gone to government aid programs. However, it should be noted that about 70% of the funds raised for government aid programs would be used on administration costs (meaning that the amount of funds lost that go to helping those in need would actually be $1.2 billion). Inversely, about 30% of funds given to private charities are consumed by administration costs. This means that the $4billion in lost revenue for the government would result in an increase of $1.6 billion ($2.8 billion total) in funds received to those in need. So this means that not only would those in need receive 2.33x more, but also that overall expenditures for government could be lowered by this new excess.
This bill seeks to be a stepping stone for allowing private citizens and charities to improve their lives in a more effective manner and in a manner they see fit while also not harming people reliant on a precarious government system.
This bill is set to be discussed in the California Senate Committee on Governance and Finance May 16th and should be strongly supported.
You can show your support for this bill by mailing these representatives and stating so:
Sen. Mike McGuire (D-2nd District) – email@example.com
Senator Janet Nguyen (R-34th District)
Senator Jim Beall (D-15th District)
Senator Ed Hernandez (D-22nd District)
Senator Robert M. Hertzberg (D-18th District)
Senator Ricardo Lara (D-33rd)
Senator John M. W. Moorlach (R-37th)