May 27, 2018
New Law Supports Donations from Former Mass. Residents

July 19, 2012 — As of July 1, former Massachusetts residents who have established residency in other states can continue providing financial donations to nonprofit organizations in the Bay State without fear of tax penalties.

This language was included in the state’s fiscal year 2013 budget and resulted from a year-long advocacy effort led by the Jewish Community Relations Council of Greater Boston (JCRC).

Specifically, this amendment updated Massachusetts revenue law to prohibit the Department of Revenue (DOR) from considering charitable contributions in determining residency for tax purposes. DOR previously followed only a guideline, and its ambiguity deterred many out-of-state philanthropists from continuing to make gifts to local charities.

“We are thankful to JCRC for championing this effort, which will help nonprofit organizations in the Commonwealth continue to grow and thrive,” said Barry Shrage, president of Combined Jewish Philanthropies, Greater Boston’s Jewish Federation.

Rick Jakious, executive director of the Massachusetts Nonprofit Network, the state’s nonprofit trade association, said, "The prior ambiguity led some lawyers and tax advisers to caution their out-of-state clients against making contributions in Massachusetts. This change makes it clear that donors can rest assured that contributing to their favorite Massachusetts nonprofits will not have adverse tax implications."

Added Michael K. Durkin, president of United Way of Massachusetts Bay and Merrimack Valley, "Charitable organizations are helping so many people in need – children who need high quality early learning experiences, youth who need support to stay in school and graduate, and families who struggle to be financially stable. Any donor who wants to make a contribution and an impact on important issues like these through the many high-performing, innovative organizations we have in Massachusetts can do so with assurance that their generosity will not impact their residency status."

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