Community Foundation of New Jersey

Tax Day ICYMI: CFNJ Heralds New Law Boosting Charitable Giving

April 15, 2014

On this tax day, we want to remind you of important legislation signed into law last year that disallows the Division of Taxation to consider a person’s charitable contributions as a factor in determining one’s residency (read: makes giving easier!)

Scroll down for our thoughts on the legislation and its impact.

Community Foundation Heralds New Law That Boosts Charitable Giving

The Community Foundation of New Jersey today congratulated Governor Chris Christie and Members of the Legislature for supporting legislation that will make it easier for former New Jersey residents to give to New Jersey charitable organizations.

The new law, S-2532/A-3860, specifically “disallows the Division of Taxation to consider a person’s charitable contributions as a factor in determining one’s income tax obligations.”

Prior to this law, donors who are former residents of New Jersey were confused or uneasy about the process by which the State of New Jersey determines one’s residency for tax purposes.  Many were advised to stop giving to New Jersey charities so as to avoid the perception of residency.

“This new law allows charitable dollars from around the country to come into New Jersey worry-free,” said Hans Dekker, President of the Community Foundation.  “Clarifying this rule will be of tremendous benefit to our state’s schools, nonprofit hospitals and nonprofits, and at a particularly critical time given our work in recovering from Hurricane Sandy.”

The legislation was sponsored by Senators Steve Oroho and Paul Sarlo and Assembly members Valerie Huttle, Grace Spencer, Thomas Giblin, Jay Webber, and Shavonda Sumter.