Monday, December 2, 2013
According to a recent study by the conservative think tank American Enterprise Institute, if President Obama limits the value of the charitable deduction, donors would withhold over $9 billion in gifts a year, a decrease in donations by about 4.4%.
Think tank president Arthur Brooks says that President Obama’s longstanding proposal to limit the tax savings for charitable gifts from 39.6% to 28% would cause “massive” harm to nonprofits.
This estimated effect on donations is larger than previous studies.
See Alex Daniels, $9-Billion in Gifts at Risk if Deduction Is Reduced, Study Forecasts, The Chronicle of Philanthropy, Nov. 21, 2013.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.