Charitable Deduction
...to thank the sector’s charitable deduction champion
ACR cordially invites foundations and charities to join us as we honor
Senator John Thune
… for his leadership on policy issues important to the non-profit sector.
Please join us for a reception with colleagues and friends in the sector
to thank Senator Thune for his leadership.
March 16, 2010
5:30 - 6:30 pm
The Monocle Restaurant
Capitol Hill, Senate side
107 D Street NE
Washington, D.C.20002
Transportation will be provided to/from the L’Enfant Plaza Hotel
This reception is being hosted in conjunction with ACR’s 2010 Summit for Leaders.
RSVP by March 10 to Amy (.(JavaScript must be enabled to view this email address)).
For an interesting look at Senator Thune read this profile in the New York Times.
Washingtonpost op-ed by Michael Gerson
Michael Gerson criticizes President Obama for his use of the itemized deduction cap to finance government spending at the expense of the non-profit community, the roots of his career.
Gerson notes: “During the last budget cycle, some defenders of this proposal argued that a tax on giving would help the nonprofit sector by funding greater health coverage, which would relieve pressure on nonprofit social service providers. With health reform now on life support, this bank-shot justification is even more absurd. The Obama administration is left with one argument: that the federal government would use the money gained from this tax better than would the private sector. The president is welcome to make this case, but he can no longer simultaneously claim to be a champion of the nonprofit world. This proposal indicates not only an ideological enthusiasm for expanded government but also a disdain for civil society.”
Further Reading
The Charitable Deduction Coalition sends a letter to the White House
On Friday, February 5, 2011, the Charitable Deduction Coalition sent a letter to President Obama asking that the White House reconsider limiting the charitable deduction in the FY 2011 budget proposal.
“As we stated during the healthcare debate, this proposal would create a disincentive for taxpayers who give the most to charitable organizations to continue their generosity. Our nation cannot afford to discourage giving at a time when charitable organizations are facing enormous financial challenges stemming from the economic downturn.”
The entire letter is available below.
Further Reading
Charitable tax deduction is back on the chopping block
The President released his FY 2011 Budget this morning. As part of this new budget, as we expected, President Obama again proposed to limit the itemized deduction, including the charitable deduction. The proposal would limit those who earn over $200,000 (singles) and $250,000 (couples) annually to a 28% itemized deduction cap (versus the 33% and 35% rates currently applied to these taxpayers). Unlike last year, however, the funds raised from this proposal would go toward reducing the deficit; last year, the revenue raised from the limitation was set aside for health care reform efforts.
ACR will be carefully monitoring these issues in the coming weeks. While the President’s Budget proposal does not carry the force of law, it does provide a blueprint for Congress to consider when they put together their own budget in the next few months.
Continue reading...
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.
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...
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.
