Recent news stories we have highlighted and find of interest.

• 3/16/12 Taking Away Charity Tax Deduction Would Hurt Nonprofits, Ithaca Journal (Joanne Florino, Triad Foundation)
• 3/15/12 In a Time of Enmity, the Charitable Deduction May Be Too Good to Give Up, AARP Blog (David Whitehead, AARP Blog)
• 3/6/12 Less Charity and More Taxes, Please, Philanthropy Daily (Scott Walter)
• 3/4/12 Make No Mistake: Nonprofits Need the Charitable Deduction, Chronicle of Philanthropy (Joanne Florino, Triad Foundation Inc.
• 3/26/12 Tax Reform Is Really Hard, Slate
• 3/4/12 Budget Deficit Forces Questions About Charity Spending on Lobbying, Chronicle of Philanthropy
• 2/20/12 Nonprofits Oppose Obama’s Charitable Deduction Changes, Sojourner
• 2/18/12 White House says Charitable Giving Won’t be Hurt by Tax Plan, Chronicle of Philanthropy
• 2/16/12 White House Explains Reasoning Behind Charitable Deduction Cap, Nonprofit Quarterly
• 2/16/12 The President’s Budget and Charitable Contributions: Driving Revenue and Demonstrating Fairness to Benefit America, White House Blog
• 2/14/12 Charitable Deduction Proposal in President Obama’s FY 2013 Budget, BNA
• 2/13/12 Charities Oppose Obama Plan on Limiting Charity Write-Offs, Chronicle of Philanthropy
• 2/13/12 Obama Budget Plan Includes New Call to Limit Charitable Deduction, Chronicle of Philanthropy
• 2/3/12 ‘Buffett Rule’ Tax Bill Would Preserve Charitable Deduction, Chronicle of Philanthropy
• 2/3/12 Only Charitable Deduction Preserved in New Buffett Rule Tax Proposal, BNA
• 1/25/12 President Vows Not to Deter Wealthy From Giving, Chronicle of Philanthropy
• 1/24/12 Obama Lays Out Policy Proposals, Wall Street Journal
• 1/9/12 Nonprofit Views Offered by the Republican Presidential Contenders, Chronicle of Philanthropy

Click here for articles before 2012.

Studies, reports and polling information on the impact of changes to the charitable deduction from a variety of sources.

• Academic
  • Center on Philanthropy, Indiana University: Impact of The Obama Administration’s Proposed Tax Policy Changes on Itemized Charitable Giving (2011)
  • University of California, Davis: How Does the Incentive Effect of the Charitable Deduction Vary Across Charities? (Published 2011)
  • Center on Philanthropy, Indiana University: The 2010 Study of High Net Worth Philanthropy: Issues Driving Charitable Activities among Affluent Households” (2010)
  • Center on Philanthropy, Indiana University: How Changes in Tax Rates Might Affect Itemized Charitable Deductions (2009)
  • Boston College: Charitable Giving: How Much, By Whom, To What, and How? (2002)
  • Urban Institute: The Cost of Giving: How Do Changes in Tax Deductions Affect Charitable Contributions? (2001)

• Government

  • Congressional Budget Office: Options for Changing the Tax Treatment of Charitable Giving (2011)
  • Congressional Budget Office: Budget Options Volume 2 (2009)
  • Congressional Research Service: Charitable Contributions: The Itemized Deduction Cap and Other FY2011 Budget Options (2010)
  • Congressional Research Service: Economic Analysis of the Charitable Contribution Deduction for Non-Itemizers (2003)

• Think Tanks

  • Heritage Foundation:Obama’s Latest Proposal to Reduce Charitable Deductions Would Crowd Out Civil Society (2011)
  • Tax Policy Center: Would Obama’s Plan to Curb Deductions Hurt Charities? (2009)
  • Center for Budget and Policy Priorities: Proposal to Cap Deductions for High-Income Households Would Reduce Charitable Contributions by Only 1.9 Percent (2009)
  • Association for the Study of Religion, Economics, and Culture: Income Tax Policy and Charitable Giving (2005)

• Polls

  • Dunham+Company: Three-fourths of Americans Favor Charitable Tax Deduction (2012)
  • Fundraisers:White House Plan to Limit Charitable Deduction Would Take Toll on Charities (2011)
  • Gallup Poll: Americans Oppose Eliminating Income Tax Deductions (2011)
  • Dunham+Company: Americans Say the Charitable Tax Deduction is Vital to Their Charitable Giving (2011)

Administration Proposals: President Obama has proposed limiting the charitable deduction for high-income earners in several proposals over the past few years.

• 2011 Jobs Plan (ACR coverage)
• Budgets: FY 2013 (ACRresponse), FY 2012 (ACR coverage), FY 2011 (ACR coverage), and FY 2010.

Deficit Reduction: As part of federal deficit reduction talks, following are proposals that have been raised, which include changes to the charitable deduction:

• “Gang of Six” – A Bipartisan Plan to Reduce our Nation’s Deficits Report recommends that Congress “reform, not eliminate” tax expenditures for health, charitable giving, homeownership, and retirement. (July 2011)
• Solutions Initiative - The Peterson Foundation released six deficit reduction plans from the American Enterprise Institute, the Bipartisan Policy Center, the Roosevelt Institute Campus Network, the Center for American Progress, the Economic Policy Institute, and the Heritage Foundation. The six plans addressed all aspects of Federal spending and revenue-raising, including reforming the current tax code.
• The Solutions Initiative (Full Report) (May 2011)
• For our analysis of the plans, click here (June 2011)
• Bipartisan Policy Center: Debt Reduction Task Force – Restoring America’s Future Report recommends a tax credit equal to 15 percent of any donation received, similar to the Gift Aid system in Great Britain. (February 2011)
• The President’s National Commission on Fiscal Responsibility and Reform (“Deficit Commission”) - The Moment of Truth Report proposes recommendations to reduce the deficit that call for massive discretionary spending cuts and eliminating tax incentives, including the charitable deduction. (December 2010)
• Century Foundation, Demos, and the Economic Policy Institute – Investing in America’s Economy: A Budget Blueprint for Economic Recovery and Fiscal Responsibility Report proposes converting the deduction to a refundable credit. (November 2010)

Opinion and thought pieces by experts, scholars, and leaders in the nonprofit sector on the charitable deduction.

• 3/16/12 Taking Away Charity Tax Deduction Would Hurt Nonprofits, Ithaca Journal (Joanne Florino, Triad Foundation)
• 3/15/12 In a Time of Enmity, the Charitable Deduction May Be Too Good to Give Up, AARP Blog (David Whitehead, AARP Blog)
• 3/11/12 U.S. Should Not Reduce the Rich’s Tax Incentive to Give to Charity, New Jersey Star-Ledger (Andy Germak, Institute for Families)
• 3/6/12 Less Charity and More Taxes, Please, Philanthropy Daily (Scott Walter)
• 3/4/12 Make No Mistake: Nonprofits Need the Charitable Deduction, Chronicle of Philanthropy (Joanne Florino, Triad Foundation Inc.
• 3/1/12 Obama Makes Fifth Attempt to Reduce Charitable Tax Deduction, The Foundary (Ryan Messmore, Heritage Foundation)
• 2/13/12 Protecting Americas Charities, Huffington Post (William Daroff, Jewish Federations of North America)
• 2/14/12 President Obama’s Proposed Charitable Deduction Cap Rides Again, Nonprofit Quarterly (Rick Cohen)
• 2/14/12 Obama’s Continued War on Philanthropy, Commentary Magazine (Jonathan S. Tobin)
• 2/12/12 Jesus Didn’t Want Higher Taxes, Philadelphia Enquirer (Rick Dunham, Dunham+Co.)
• 2/7/12 In Taxes Obama Must Be Clear on Charity, The Hill (Former Congressman Robin Hayes (R-NC))
• 1/28/12 Value of the Federal Charitable Deduction, West Virginia Gazette (Paul Daugherty, West Virginia Grantmakers)

Click here for op-eds before 2012.

Links to help you stay informed on proposals and legislation or to contact your representative.

• Information for Policymakers and Staff
• Hearings: Following are scheduled or recent congressional hearings on issues impacting charitable giving.
• Senate Finance Committee “Tax Reform Options: Incentives for Charitable Giving (October 18, 2011)
• Senate Finance Committee “How Do Complexity, Uncertainty and Other Factors Impact Responses to Tax Incentives? (March 30, 2011)
• Quotes - Read what nonprofit leaders, elected officials, and other voices have to say about the charitable deduction.
• Chronicle of Philanthropy - Research, reporting, and views on the charitable deduction.
• State Profiles - State profiles on the economic value and impact of the nonprofit sector compiled by Independet Sector.
• THOMAS (Library of Congress) - Source for federal legislative information including searching for bills, Members of Congress, and legislative committees.

ACR is engaged in protecting the charitable deduction through a number of ways.

Events:

• 2012 Summit for Leaders & Lobby Day - March 21, 2012
• ACR Fly In/Speak Out: Preserving Charitable Giving (Lobby Day) - October 6, 2011

Following are letters from coalitions of charitable and philanthropic organizations, including the Nonprofit Coalition, to Members of Congress and the Administration:

• 12/15/11 Letter to Chairman Max Baucus (deficit reduction), Nonprofit Coalition
• 11/7/11 Letter to the Super Committee (Committee recommendations), Nonprofit Coalition
• 9/21/11 Letter to the Super Committee (Jobs bill), Nonprofit Coalition
• 9/21/11 Letter to Congress (Jobs bill), United Way
• 7/18/11 Letter to the President & Congressional Leaders (Debit Ceiling/Deficit Reduction Negotiations), Independent Sector (appeared as full-page ad in Politico)
• 7/14/11 Letter to Senator Max Baucus & Congressional Leaders (Debit Ceiling/Deficit Reduction Negotiations), Nonprofit Coalition
• 7/14/11 Letter to members of Congress (Debit Ceiling/Deficit Reduction Negotiations), Grantmakers Forum of New York
• 3/4/11 Letter to the President (FY 2012 Budget), Nonprofit Coalition
• 2/5/10 Letter to the President (FY 2011 Budget), Nonprofit Coalition
• 10/1/09 Letter to Senator Max Baucus (Healthcare Reform), Nonprofit Coalition
• 9/21/09 Letter to Senator Max Baucus (Healthcare Reform), Nonprofit Coalition

Interested in getting involved with efforts to protect the charitable deduction?
Contact William Coughlin (william@acreform.com) for more information.