Friday, October 26, 2012
The Chronicle of Philanthropy is reporting that leaders of big nationwide nonprofits on Thursday sent letters to President Obama and former Massachusetts Governor, Mitt Romney, urging the presidential candidates to reconsider their proposals to cut the charitable tax deduction.
The nonprofit leaders also announced that they have scheduled a gathering on December 4 and 5 to bring hundreds of their members to Washington to tell members of Congress that any tax changes that lead to a decline in private giving would devastate nonprofits and the people they serve.
Among the organizations that sent the letters were the Salvation Army and United Way Worldwide and nonprofit coalitions like the Association of Fundraising Professionals and Independent Sector. According to the groups, “Any proposed cap would have long-lasting negative consequences on the charitable organizations upon which millions of Americans rely for vital programs and services.”
President Obama has several times proposed to limit the charitable deduction to 28 percent—instead of the current 35 percent—for individuals earning more than $200,000 and families earning more than $250,000. Congress has never gone along with that kind of limit, in part because of strong charity opposition.
Although Former Governor Romney has not been specific about his tax plan, he has proposed to limit the amount of deductions people could take over all. The Chronicle reports that in a recent debate, Mr. Romney suggested that people could choose whether they wanted to take deductions for housing or charitable giving if they went over the limit.
We wait to see what will happen after the election season is over.