COEUR d’ALENE — The new federal tax law will likely put more money in the pockets of most working Americans, but one aspect of the law may impact local organizations that rely on charitable giving to stay afloat.

North Idaho nonprofits, and the foundations that collect donations to bolster budgets, could see a decrease in the amount of money they collect next year.

That’s because under the latest tax law — most of which will take effect Jan. 1 — it may no longer be financially beneficial for taxpayers to itemize returns. The law offers bigger standard deductions and substantially increases the allowable itemized deductions of individuals and companies, which could affect how much cash they give to charities.

Making it harder to hit the itemization threshold, critics say, could mean fewer donations in 2018.

“Charitable tax incentives enable people to give more,” said Keri Stark, director of community impact at United Way of North Idaho.

Tax incentives traditionally are a vehicle to assure that donations come through the door, said Stark, whose group distributes around $200,000 annually in the form of grants to nonprofits in the area.

“Along with every other organization, we’re reliant on financial resources and human resources,” Stark said. “We have to have money to address difficult issues.”

The latest tax rules could tip the scale toward fewer donations, she said, but incentives are only part of the equation of giving.

“In our community there is a lot of trust in the work the nonprofits are doing,” Stark said.

Despite apprehension that reducing tax incentives could result in slimmer budgets for nonprofits that fund everything from education, health care, transportation, shelters and food distribution for low-income North Idaho families, many Panhandle groups think the latest tax law won’t have a noticeable impact.

“The people who contribute are doing it for a lot of reasons,” Stark said. “I have reason to believe our community will continue to support nonprofits.”

The assurance of goodwill doesn’t extend across the state, however.

In a joint letter to Idaho’s Congressional delegation sent before the tax bill was passed last week, the presidents of Idaho colleges and universities outlined the negative effects of the bill.

Rick MacLennan, president of North Idaho College, was among campus heads who believe that by doing away with many incentives, the new tax law will stifle options for students and administrators.

“(It) would undoubtedly reduce the number of people who itemize charitable deductions and reduce charitable giving to not-for-profit entities such as public colleges and universities,” the presidents wrote.

Conversely, Rayelle Anderson, director of NIC’s foundation, which raises money through community donations from scholarships, technology and equipment as well as for capital improvements, said incentives likely won’t affect fundraising.

“Donors to NIC give generously to support our mission and student success regardless of tax breaks,” Anderson said.

The sentiment is shared by Leslie Orth, director of the Post Falls Food Bank; and Julie Holt, director of the Kootenai Health Foundation, which collects about $1 million annually from donors.

“It probably won’t have a huge impact on us,” Holt said. “I’m not overly concerned at this point.”

The people and companies donating to the hospital’s foundation, Holt said, do it because they believe in it.

“In the studies I have seen over the years, the people who donate don’t do it because it’s tax deductible,” Holt said. “That’s not the reason people give.”

Orth said her nonprofit has a budget of around $400,000, built through donations from grants, individuals and local businesses.

The bulk — around 60 percent — of the food bank’s budget comes from individuals and businesses, she said.

“The majority is from individuals,” she said.

She isn’t concerned that the lack of tax incentives will hurt the food bank’s operation.

“Some people think (potential donors) are no longer going to be giving to charities,” Orth said. “I don’t believe that.”

People give, she said, “to support the mission.”

Under the new tax bill, the standard deduction amounts will increase from $6,500 to $12,000 for individuals. The standard deductions increase incrementally for people filing as heads of households and for married couples filing jointly. The bill is meant to boost economic growth and investment.

At the Lake City Center in Coeur d’Alene, director Rick Currie said donations to his center, which operates solely from the approximately $300,000 it receives annually and funds its Meals on Wheels program, go up and down with the economy.

Regardless of tax incentives, he hopes the latest tax law will spur economic growth that will carry the center into the future.

If donations flag, he said, the organization will continue with its mission.

“If donations drop, we’ll make it work,” he said. “We’re not going to compromise the quality of our programs.”