ACR Newsletter

Welcome to the Alliance for Charitable Reform’s biweekly newsletter. Here we’ll provide you with news and views on issues that impact philanthropy.

Washington Roundup | Consider This | Top Reads

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Friday, August 22, 2014

>> Federal: Washington Roundup
>> Federal: Rep. Ryan: No Cap for Charitable Deduction
>> Federal: Charitable Deduction Leads to a Sharp Increase of Donors in Puerto Rico
>> Federal: New Director for K-12 Programs
>> Top Reads: Proving Conventional Wisdom Wrong (Again) on Charitable Giving Tax Incentives

Washington Roundup

Congress is out of session for its August recess. Members are expected to return on September 8.

Rep. Ryan: No Cap for Charitable Deduction

House Budget Committee Chairman Paul Ryan (R-WI), who is widely expected to take over as Chairman of the House Ways and Means Committee, recently voiced his opposition to capping the charitable deduction, according to a report from Politico. Ryan stated that the charitable deduction is “the one area where I believe we should not have a top cap.”

As you may recall, Chairman Ryan was one of the Members of Congress with whom ACR leaders met on July 8 to discuss charity-related issues. He noted in the meeting the critical role of charitable services and the importance of private giving. At the time, ACR leaders made clear the importance of the charitable deduction.


Ryan’s recent comment came during an interview with Bloomberg TV in reference to his support for limiting the current mortgage interest deduction.

Charitable Deduction Leads to a Sharp Increase of Donors in Puerto Rico

Puerto Rico saw a 70 percent increase in the number of individuals who made charitable donations following the implementation of a 100 percent charitable deduction in 2011, according to a report released last week by the Flamboyan Foundation.  The charitable deduction was one of several revisions in the Puerto Rican tax code in 2011.

“Nonprofit organizations and financial advisors of potential donors have an opportunity to spread the word about the 100 percent deduction for charitable donations and increase the number of taxpayers who make larger donations in Puerto Rico during the next few years,” Dr. Guiomar García Guerra, executive director of Flamboyan Foundation, said in a news release.

The number of Puerto Rican citizens who claimed charitable deductions on their Individual Tax Return Form increased from 27,644 individuals in 2010 to 47,004 in 2011, according to the report. That led to an increase of $5 million in charitable donations. Despite the large increase in the number of individual donors, the figure still represents only 4.6 percent of all taxpayers. This contrasts significantly with the 26 percent of those in the continental U.S. who claim a charitable deduction on their taxes.

  Flamboyan Foundation is a private, family foundation focused on improving educational outcomes for children in public schools in Washington, D.C. and Puerto Rico, according to its website. The foundation plans to expand its research into private charitable giving by partnering with the Indiana University Lilly Family School of Philanthropy—which issues the annual Giving USA report—and the Kinesis Foundation on a future study of household giving patterns and priorities in Puerto Rico.

New Director for K-12 Programs

On August 1, Nicole Jarbo joined The Philanthropy Roundtable as the new director for K-12 education programs. Prior to joining the Roundtable, Jarbo taught first-grade at a KIPP school in New Orleans and 9th grade English at Carver Collegiate Academy, where she helped students achieve 2.5 years of reading growth in 10 months. She also launched a company, TeacherGym, to train teachers in effective classroom management practices.

Watch this five minute video for a brief introduction to Nicole and her vision for the K-12 education program.

Top Reads

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