“The last thing on earth charities need is a disincentive from the government to people who are their donors, especially their biggest donors,” says Abigail Disney, New York philanthropist and grandniece of Walt Disney.
She makes a stark prediction: “New York is a leader in philanthropy, so what New York does I can’t imagine other states won’t follow,” she said, adding: “Congress could go looking at it, too.”
]]>ACR and The Philanthropy Roundtable joined efforts with other national nonprofit organizations to express opposition to this measure. ACR is also concerned that this may signal a trend we’ll see in other states and in Washington.
For full coverage, visit the Chronicle of Philanthropy.
Click here for additional background on this issue.
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And there are some third rails in the tax world as well. For years, Congress has implemented and extended popular tax deductions and credits for both individuals and institutions that have achieved a “sacred cow” status. The home mortgage interest deduction and the R&D tax credit are just two such examples…
Set this against our country’s current fiscal situation: Rising national debt and new public policy priorities… Suddenly, those sacred cows in tax world aren’t so sacred anymore.
Nonprofits are not immune from this debate – the charitable deduction is considered a tax expenditure… What does this mean for us?
]]>Update:
August 10, 2010 - New York Governor David A. Paterson has signed into law a revenue bill passed by the state’s legislature that limits charitable deductions for wealthy residents.
Read full coverage here.
]]>We all know that the economy has not been kind to state and federal budgets. At the federal level, the government has responded by pumping money into the economy, in the hopes of jumpstarting economic growth and in the process running up enormous deficits. But balanced budget requirements at the state level won’t allow that and as a result, states are in the hunt for revenue with a vengeance.
]]>The non-profit community expressed concerns to Governor Lingle that this measure would discourage donations and contributions from individuals and small businesses since they would no longer be able to deduct these contributions on their State income tax returns.
Lingle noted in a Statement of Objection (see below), “Our community is still feeling the impacts of the recession and this is the time when we want to encourage donations to charitable organizations, not enact laws that hinder them.”
]]>Download:
- Press Release: Governor Lingle Vetoes Bills that Discourage Investments, Charitable Contributions
- Governor’s Statement of Objection
Here’s an excerpt from Santa’s piece:
“We at The Philanthropy Roundtable agree with Emmett Carson that “government should not be in the business of deciding who sits on foundation boards or which nonprofit organizations receive grants based on demographics.” And this is precisely the intent of the new Florida law on philanthropic freedom—no more, no less.”
View both articles here:
- Letter to the Editor: Florida’s New Foundation Law Protects Donor Intent
- Opinion: Opinion: New Fla. Law Makes It Harder for Foundations to Live Up To Values
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So you might ask why did the Senate spend nearly eight weeks and try multiple times to close off debate on a relatively modest package of tax provisions (about $12 billion a year over ten years) that aren’t new, are pretty popular, and are merely extensions of current law?
The short answer is 60 votes, concerns about deficit spending and controversy over how to pay for these tax provisions…Needless to say, House Democrats are not amused. What does this mean going forward?
]]>These provisions are a big win for the nonprofit community. Our advocacy efforts coupled with your examples about this bill’s impact on your day-to-day operations resonated with Members of Congress.
A final financial services reform conference report must now be approved by both the House and Senate. We expect the House and Senate to pass the final bill shortly.
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So Congress must be working night and day to resolve the issue right? Wrong. With half of 2010 behind us, there is no clear plan to deal with the estate tax.
Why? Keep Reading…
]]>Here’s an excerpt:
“Americans are increasingly worried about government overreach into areas of the economy and society that would have seemed unimaginable just a few years ago. So it is refreshing to see that private-sector leaders in at least one important area—charitable giving—are starting to push back.
Earlier this month, the state of Florida passed a law that actually limits the ability of the state to interfere with its citizens’ private charitable giving. The new law guarantees charitable donors the freedom to give to the charities they care about and in the manner that they think will be most effective.
Overall private giving is likely to increase, to the benefit of all. It’s an encouraging example that other states may soon be following.”
Click here to read the full op-eds:
- Washington Examiner
- San Franciso Exminer
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