Feb 2, 2010
2010 ACR Summit for Leaders
Tuesday, March 16, 2010
8:00 am – 12:30 pm
Washington, DC
REGISTER by March 9, 2010:
Online: 2010 Summit for Leaders
Phone: 202-822-8333
Latest News
Feb 1, 2010
President Obama Releases FY 2011 Budget Proposal
Charitable tax deduction is back on the chopping block
The President released his FY 2011 Budget this morning. As part of this new budget, as we expected, President Obama again proposed to limit the itemized deduction, including the charitable deduction. The proposal would limit those who earn over $200,000 (singles) and $250,000 (couples) annually to a 28% itemized deduction cap (versus the 33% and 35% rates currently applied to these taxpayers). Unlike last year, however, the funds raised from this proposal would go toward reducing the deficit; last year, the revenue raised from the limitation was set aside for health care reform efforts.
ACR will be carefully monitoring these issues in the coming weeks. While the President’s Budget proposal does not carry the force of law, it does provide a blueprint for Congress to consider when they put together their own budget in the next few months.
Feb 1, 2010
Thune Speaks Out on the FY 2011 Budget
Thune defends the charitable deduction at a critical time
Senator John Thune released a press response to the president’s 2011 budget.
According to the press release, this budget proposal reduces the federal tax deduction for charitable deductions (like President Obama’s budget proposal last year). Notably, Senator Thune was successful in getting his amendment to the FY 2010 budget to preserve the full deduction approved in the Senate by a vote of 94-3 last April. It was eventually stripped from the final budget bill
Thune notes, “At a time when many in our country and around the world are struggling, any action that could limit charitable giving should not be undertaken,” added Thune. “I will continue working with my colleagues to preserve the full deduction for charitable giving.”
ACR will continue to work with Senator Thune who has been a champion for the philanthropic sector in protecting the charitable deduction.
For more on Thune’s work, click the “Thune” tag below.
Further Reading
Jan 28, 2010
Reflections on the 2010 State of Union
ACR recaps highlights from the President’s State of the Union Address
Following is a broad summary of the proposals offered by the President (select ‘Continue reading’).
The important take-away from his speech is that the Administration has made a hard pivot away from health care reform, which wasn’t mentioned until half an hour into the speech, toward job creation in a clear effort to win back some of the political favor lost over the last few months. This new focus, combined with his plan to freeze government spending, will no doubt send Congress searching for additional revenue raisers – potentially including higher marginal tax rates for those singles earning more than $200,000 and couples earning more than $250,000.
ACR will be carefully monitoring both the President’s FY 2011 Budget and Congress’ work on the budget for any potential issues relating to the nonprofit sector. As always, we will continue to keep you updated on the latest.
Jan 27, 2010
Healthcare Update – Massachusetts Election, the Healthcare Game Changer
Future of healthcare reform stands in limbo
The election of Scott Brown on January 20, 2010 to the seat of junior senator for Massachusetts - replacing the late-Sen. Ted Kennedy - represents a potential game changer for the future of healthcare legislation. The election of Brown to the Senate now gives Republicans a “blocking minority” of 41 seats, breaking the previous 60-vote hold that Democrats in the Senate has held up to this point. As such, the status of healthcare reform has been thrown in doubt.
As you know, ACR has been actively working with the Charitable Deduction Coalition to ensure that a limitation on the itemized deduction would not be included in the final healthcare legislation – and have been successful thus far as the provision was not included in either the House or Senate healthcare bills.
As all things healthcare-related are up in the air at this point, ACR will remain vigilant on this important issue as leaders of the House and Senate ponder their next course of action.
Achieving Results | Proper Oversight
Jan 27, 2010
Adam Meyerson on “The Generosity of America”
Adam Meyerson, president of The Philanthropy Roundtable, recently delivered a speech entitled “The Generosity of America” as part of a lecture series sponsored by Hillsdale College’s Allan P. Kirby, Jr. Center for Constitutional Studies and Citizenship.
Adam notes “Private charitable giving is at the heart and soul of public discourse in our democracy. It makes possible our great think tanks, whether left, right or center. Name a great issue of public debate today: climate change, the role of government in health care, school choice, stem cell research, same-sex marriage. On all these issues, private philanthropy enriches debate by enabling organizations with diverse viewpoints to articulate and spread their message.”
He cautions us though, warning “this freedom to give is now under serious threat… three kinds of proposals coming from Capitol Hill, the IRS, state governments, and sometimes from the charitable sector itself, that should be of concern to all Americans.”
The full article is available here.
Federal Legislation | State Legislation
Jan 26, 2010
2009 in Review
ACR’s accomplishments for 2009
As 2010 begins, the Alliance for Charitable Reform takes a moment to reflect back upon a busy and productive 2009 and share new initiatives for the year ahead.
Jan 1, 2009
ACR Events
Upcoming:
March 16, 2010
ACR Summit for Leaders, Washington, DC
Recent Past Events:
November 12, 2009 - Debate: Southeastern Council of Foundations, Memphis, TN
November 16, 2009 - Debate: Grantmakers of Western Pennsylvania Annual Meeting, Pittsburgh, PA
November 4, 2009 - State Policy Network (SPN) Annual Meeting, Asheville, NC
October 13, 2009 - Chicago Kent Law Review Symposium: The Law of Philanthropy in the 21st Century,Chicago, IL
October 1 - 3, 2009 - Philanthropy Roundtable’s 2009 Annual Meeting, Colorado Springs, Colorado
Feb 5, 2010
“President Obama beytrays his community-organizer roots”
Washingtonpost op-ed by Michael Gerson
Michael Gerson criticizes President Obama for his use of the itemized deduction cap to finance government spending at the expense of the non-profit community, the roots of his career.
Gerson notes: “During the last budget cycle, some defenders of this proposal argued that a tax on giving would help the nonprofit sector by funding greater health coverage, which would relieve pressure on nonprofit social service providers. With health reform now on life support, this bank-shot justification is even more absurd. The Obama administration is left with one argument: that the federal government would use the money gained from this tax better than would the private sector. The president is welcome to make this case, but he can no longer simultaneously claim to be a champion of the nonprofit world. This proposal indicates not only an ideological enthusiasm for expanded government but also a disdain for civil society.”
Further Reading
Jan 22, 2010
Relief for Haiti, incentives for taxpayers
Quick, bi-partisan legislation allows donations to Haiti relief to be claimed on 2009 taxes returns
Reacting quickly to the Haiti Relief effort, the House and Senate have passed legislation, HR 4462, meant to encourage donations for Haiti earthquake relief efforts. This legislation allows individuals to claim on their 2009 tax returns, a donation made in 2010 for Haiti earthquake relief. The President signed the bill into law on Friday, January 22nd.
Potentially in addition to HR 4462, Senators Charles Schumer (D-NY) and Kirsten Gillibrand (D-NY), have stated their interest in introducing legislation that would temporarily eliminate the 50% deductibility limit for individuals donating to earthquake relief, similar to legislation passed after Hurricane Katrina to encourage additional donations. Currently individuals are allowed to deduct up to 50% of their adjusted gross income in one year. This legislation would also extend the enhanced deduction for charitable food inventory contributions through 2010, which allows companies to deduct the market value of their donation, as opposed to just the cost to produce the food.