Charitable Deduction
Thune defends the charitable deduction at a critical time
Senator John Thune released a press response to the president’s 2011 budget.
According to the press release, this budget proposal reduces the federal tax deduction for charitable deductions (like President Obama’s budget proposal last year). Notably, Senator Thune was successful in getting his amendment to the FY 2010 budget to preserve the full deduction approved in the Senate by a vote of 94-3 last April. It was eventually stripped from the final budget bill
Thune notes, “At a time when many in our country and around the world are struggling, any action that could limit charitable giving should not be undertaken,” added Thune. “I will continue working with my colleagues to preserve the full deduction for charitable giving.”
ACR will continue to work with Senator Thune who has been a champion for the philanthropic sector in protecting the charitable deduction.
For more on Thune’s work, click the “Thune” tag below.
Further Reading
Future of healthcare reform stands in limbo
The election of Scott Brown on January 20, 2010 to the seat of junior senator for Massachusetts - replacing the late-Sen. Ted Kennedy - represents a potential game changer for the future of healthcare legislation. The election of Brown to the Senate now gives Republicans a “blocking minority” of 41 seats, breaking the previous 60-vote hold that Democrats in the Senate has held up to this point. As such, the status of healthcare reform has been thrown in doubt.
As you know, ACR has been actively working with the Charitable Deduction Coalition to ensure that a limitation on the itemized deduction would not be included in the final healthcare legislation – and have been successful thus far as the provision was not included in either the House or Senate healthcare bills.
As all things healthcare-related are up in the air at this point, ACR will remain vigilant on this important issue as leaders of the House and Senate ponder their next course of action.
Adam Meyerson, president of The Philanthropy Roundtable, recently delivered a speech entitled “The Generosity of America” as part of a lecture series sponsored by Hillsdale College’s Allan P. Kirby, Jr. Center for Constitutional Studies and Citizenship.
Adam notes “Private charitable giving is at the heart and soul of public discourse in our democracy. It makes possible our great think tanks, whether left, right or center. Name a great issue of public debate today: climate change, the role of government in health care, school choice, stem cell research, same-sex marriage. On all these issues, private philanthropy enriches debate by enabling organizations with diverse viewpoints to articulate and spread their message.”
He cautions us though, warning “this freedom to give is now under serious threat… three kinds of proposals coming from Capitol Hill, the IRS, state governments, and sometimes from the charitable sector itself, that should be of concern to all Americans.”
The full article is available here.
ACR’s accomplishments for 2009
As 2010 begins, the Alliance for Charitable Reform takes a moment to reflect back upon a busy and productive 2009 and share new initiatives for the year ahead.
Continue reading...
Healthcare reform works through final procedural phases to passage without the funding of the charitable deduction
Senate Majority Leader Reid was successful in getting the 60 votes necessary to pass the first procedural motion to move forward debate on the Senate’s healthcare reform legislation - setting up a vote for final passage for Christmas Eve. If Republicans do not force the full debate on all of the procedural motions, the vote on final passage could come as early as tomorrow morning.
No other substantive amendments will be offered before final passage other than Sen. Reid’s substitute which was released this weekend. ACR is pleased to report that the charitable deduction limitation was NOT included in Sen. Reid’s substitute, and therefore will not be included in the Senate’s bill. There was a small change in Reid’s amendment to the tax-exempt hospital provision that would change the limit that charitable hospitals can charge for emergency or medically-necessary care from “lowest amount charged” to individuals with insurance to “amount generally billed.”
Continue reading...
ACR and coalition work to ensure charitable deduction are left off the table
On Saturday, November 21st, the Senate voted 60 – 39 in favor of a procedural motion to allow the Senate to begin debating their health care package, “The Patient Protection and Affordable Care Act.”
ACR is pleased that, until this point, a limitation on the itemized deduction has not been included in either the House or Senate health care legislation. However, we remain concerned that it could get added during the Senate floor amendment consideration that begins next week, after the Thanksgiving recess and may last for several weeks moving this debate likely into 2010.
Continue reading...
Further Reading
Senator Thune rallies more colleagues in support of protecting the charitable tax deduction
Last week, Senator John Thune (R-SD) sent to all of the members of the Senate a letter signed by 31 senators urging them to oppose any attempts to limit the charitable deduction. Senator Thune has been a champion for ACR and the charitable deduction coalition working closely with us to help inform and rally support in preparation for the fight on health reform.
ACR remains concerned that amendments will be offered during the Senate battle that could use the limitation of the charitable deduction to help pay-for the legislation. We will continue to work with Senator Thune, other allies on Capitol Hill, the charitable deduction coalition and other partners to help preserve, protect and promote the work grantmakers do every day.
To review the Chronicle of Philanthropy’s coverage, read comments from those in the philanthropic community or voice your own opinion, click here.
Further Reading
United Way Worldwide speaks out against using charitable deduction to pay for healthcare reform
A member of the charitable deduction coalition speaks out against Congressional proposals to cap the charitable deduction to pay for health care reform or other purposes. Brian Gallagher, CEO of the United Way Worldwide, reminds Roll Call readers that giving is part of the fabric of American society and has been embodied in our federal tax laws. Capping the deduction is akin to taxing income Americans would use to benefit the common good. As a result, the people served by charities will suffer.
Gallagher notes, “Disconnecting the charitable deduction from the tax rate is a step toward abandoning who we are as a nation — one that lifts up and supports those in need.”
Read the full article here.
Senate Committee passes health care bill without cap on charitable tax deduction or exec compensation
Yesterday, in a 14-9 vote, the Senate Finance Committee pushed healthcare legislation on to the next phase of passage. ACR is pleased to report that none of the nonprofit related amendments we were monitoring made it into this final bill.
None of the amendments using the 35% limitation on itemized deductions were offered during the mark-up. However, one senator briefly mentioned the limitation and how it was necessary to restore fairness in the current system. The ACR team is working closely with the charitable deduction coalition and Sen. John Thune’s office to gather support and ensure that our message to oppose any attempts to limit the charitable deduction will be heard on Capitol Hill.
In addition, amendments from Sen. Charles Grassley clarifying IRS authority regarding governance questions on the Form 990 and eliminating the safe harbor for tax-exempts from the IRS when determining “excessive” executive compensation were not included in the bill. We anticipate that these proposals may resurface in the future. Sen. Grassley highlighted his concern about the profit-motive of nonprofits and his desire to hold tax exempt organizations more accountable in the executive compensation area.
For more information, check out The Chronicle of Philanthropy’s coverage:
ACR & coalition submit a petition to Senator Baucus
Today, a letter was sent by a coalition of organizations and foundations to Senator Max Baucus, the current chairman of the United States Senate Committee on Finance, to spare the charitable tax deduction. ACR joined this coalition with the aim of protecting the charitable deduction from future reductions as a policymakers look to it as a revenue raiser for expansions in government programs. The coalition includes the American Red Cross International, Council on Foundations and the United Way among others. We’ll keep you posted.
Further Reading
