Some Charities Worried about Obama's 2010 Budget

By Jon Jordan, NEWS 9

OKLAHOMA CITY -- President Obama's budget for 2010 is coming under fire. Part of the reason is that it would scale back the tax deduction those earning more than $250,000 can take for their charitable giving.

This change has some charities on edge, worrying the new rule could mean even fewer donations. Many donations for non-profits are already slowing as the economy goes deeper into recession. Some believe under Obama's budget that will only get worse, but at least one non-profit is holding out hope that doesn't happen.

Under Obama's plan, the biggest money makers, those making $250,000 would see their taxes go up, in addition limiting the amount they get on tax breaks. For instance, scaling back their tax break on charitable donations from 35 percent to 28 percent.

Charity Navigator, the nation's largest independent charity evaluator said: "For many charities, 80 percent of their individual contributions come from the wealthy. A reduction in such giving could have horrific consequences."

Kelley McGuire, who heads Big Brother Big Sisters of Oklahoma City, isn't as convinced donations would drop. She said for most people who give it isn't about the money.

"We hope that people would continue to give to the mission and not based on the deductions that they get," McGuire said.

McGuire said despite these difficult times, Big Brothers Big Sisters increased their donations last year and expect to see their numbers go up again this year.

Click here to use a tax calculator and see how President Obama's plan will affect your taxes.