California Tax Donations Lost in Bureaucracy

Every year when they do their taxes, Californians donate millions for charitable causes, but nearly $10 million of that money sat unspent in government accounts at the end of last year and some of the funding never reaches its intended target.
California Tax Donations Lost in Bureaucracy
Taxpayers across at least 38 states will see significant changes in state taxes in 2023 with 11 states trimming their state income tax levies beginning Jan. 1. Justin Sullivan/Getty Images
|Updated:

SACRAMENTO, Calif. — Every year when they do their taxes, Californians donate millions for charitable causes, but nearly $10 million of that money sat unspent in government accounts at the end of last year and some of the funding never reaches its intended target, according to a review by The Associated Press.

Good intentions often meet a lengthy bureaucratic maze with little oversight, leaving many of the contributions delayed and lost. Lawmakers leave distribution up to state agencies that sometimes don’t know what to do.

California has the nation’s largest voluntary tax contribution program, with 36 funds included on forms in the last decade. Tax returns are a prime opportunity to raise money from people expecting refunds. Lawmakers like the voluntary donations because they can say they helped good causes without committing state dollars.

The AP reviewed a decade of financial records for 29 funds that collected a total of $35 million since 2005; almost $10 million remained at the end of 2014. In some cases, the donations have ended back in state coffers. Records show that $278,000 raised for asthma and lung disease research reverted to the state treasury because neither the Legislature nor the distributing agency put them to use. The state Department of Education says $88,000 meant for disadvantaged youth will go back to state coffers because there wasn’t enough funding for the proposed program.