Fiscal Cliff Compromise Threatens Charity Donations - Central Coast News KION/KCBA

Fiscal Cliff Compromise Threatens Charity Donations

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WATSTONVILLE, Calif. -- Inside the Salvation Army of Watsonville, Cook Maria Espinosa was gearing up for the annual Christmas Eve dinner. In the dining room, volunteer Javier Del Prado organized the hundreds of donated loaves of bread for guests.

It's a scene that you'll find any day there, but the holiday season is just a little more exciting.

"All this is made possible through donations. We don't close our doors," said Robert Viquez.  

More than 100 families are expected to walk through Salvation Army's doors and enjoy a Christmas Eve dinner. The Salvation Army hopes that the donations that make it possible continue to come in next year.

But under the fiscal cliff compromise charitable deductions on tax returns are on the chopping block and that could affect how Christmas Eve dinners will pan out next year.

Charities worry about a proposal to cap deductions. There are also talks that under the White House's proposal, charitable deductions would disappear as a whole. That could ultimately affect how generous people are with donations. Or if they donate at all.

"If we don't have the support from the community that donates. What will happen? It will be bad," said Espinosa.  

But the threat from the fiscal cliff compromise isn't slowing these volunteers down. They said their priority is putting a smile on those in need first.

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