Nonprofit Organizations Strongly Support Keeping the Charitable Deduction Intact
Coalition of Organizations Send Letter to Congress, Plan Day on Capitol Hill
WASHINGTON, D.C.—In response to proposals to limit the charitable contribution tax deduction, a coalition of nonprofit organizations sent a letter to Senator Max Baucus (D-MT), chairman of the Senate Finance Committee and the members of the “Super Committee” laying out the potential damage to Americans seeking help from nonprofit services.
“Charities are being forced to do more with less,” said Sue Santa, Senior Vice President for Public Policy at The Philanthropy Roundtable. “Giving has suffered significantly in recent years while the demand for help has risen. Now is not the time to do anything that could result in less giving. We sent this letter to send a strong message to Congress that they must preserve giving and keep the charitable contribution tax deduction intact.”
The letter was signed by 19 organizations including the United Way, the Association of Gospel Rescue Missions, Jewish Federations of North America, and the American Red Cross. The letter noted charitable giving by American donors who itemize their tax returns dropped by about 20 percent from 2007 through 2009. Although giving rose slightly in 2010, the modest gain will do little to offset the low levels of giving during previous years.
To further speak out on proposals to dial back the charitable contribution, the Alliance for Charitable Reform (ACR), which is a project of The Philanthropy Roundtable, will be hosting more than two dozen nonprofit leaders from around the country for a “Fly in/Speak Out: Preserve Giving” day on Capitol Hill. The delegation will meet with dozens of congressional offices to reinforce the importance of preserving the charitable contribution tax deduction.
“More than 70 percent of all giving in this country is done by individuals. Americans have a strong interest in preserving the tradition of generous charitable giving,” said Santa. “We oppose the reduction of this tax provision where there is wide uncertainty about the possible ripple effects it could have on organizations that help the most vulnerable in our communities.”
The full text of the letter is below.