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Authors Reinforce Role of Private Philanthropy, Limited Government Role
WASHINGTON, D.C.—Private philanthropic money should be spent how the donor intends, addressing issues for the public good, with limited involvement by government according to a report released today. The report debunks claims that private charitable dollars are actually public money, demonstrating this through a series of legal precedents throughout American history.
“American is the most generous nation on Earth. We gave away about $300 billion last year,” said Adam Meyerson, President of The Philanthropy Roundtable. “We must ensure private philanthropy continues to thrive and does not become a political football or come under further attack by elected officials, so-called watchdogs, and activists. The appropriately limited system in place works, and we should be doing all we can to encourage more private giving.”
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The Philanthropy Roundtable released the second edition of its popular publication How Public is Private Philanthropy? Separating Reality from Myth by legal scholars Evelyn Brody of Chicago-Kent College of Law and John Tyler of the Ewing Marian Kauffman Foundation.
Part of the mission of The Philanthropy Roundtable is to make its members aware of the features of the legal and policy climate that may affect donors’ ability to achieve their charitable aims most effectively. In recent years, this climate has included increasing pressures from some public officials and advocacy groups to subject private philanthropies to more uniform standards and stricter government regulation. Such changes could significantly affect the ability of philanthropies to continue to play their role in supporting and nourishing American pluralism…
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Consider This…
Back in February of 2010, the Washington area experienced what came to be known as “Snowmageddon.” In our suburban Maryland backyard, we measured a full 37 inches of snow!
But hang on to your hats. The events leading up to the end of this year could put “Snowmageddon” to shame. We are talking about “Taxmageddon.” That is the term Congressional staffers have devised to describe what we may be facing on the tax front come January 1, 2013.
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The latest edition of the ACR newsletter is available below. Here are highlights:
Upcoming Event Summit for Leaders
Washington Roundup:
- President’s Budget
- Payroll Tax Cut Extension
- Tax Reform
Consider This:Are Ready for “Taxmageddon”?
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By Heather Higgins
In every budget President Obama has sent to Congress, he has signaled to the American public that promoting private giving is not his priority: each year he has proposed a cut to the charitable deduction. He didn’t let us down this year, again choosing to devalue charitable giving by proposing to limit the charitable deduction.
In this year’s budget proposal, the president added a new twist to the narrative. He included his principles for tax reform in the budget. The “Buffett rule” was one of those principles, which would set a minimum tax of 30% and eliminate all deductions on anyone making $1 million or more, although under the Buffett Rule, the charitable deduction would be the only deduction preserved. The president is sending mixed messages to the charitable community. On one hand, he wants to scale back the charitable deduction for anybody making over $250,000, but on the other hand, he emphasizes its importance by leaving it as the only deduction for those subject to the Buffet rule.
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BNA
Key Development: Proposes 28 percent limit on charitable deductions for the wealthiest Americans.
Potential Impact: Maintains the status quo on deductions rather than providing a special rule for charities.
Next Steps: Obama’s budget faces tough scrutiny as Congress forges a compromise plan for FY 2013.
President’s Obama’s fiscal year 2013 budget proposed a 28 percent limitation on itemized deductions for the wealthiest Americans—including the charitable deduction.
Charities had hoped the budget, released Feb. 13, would continue to single out the charitable deduction as the only deduction not to be capped at 28 percent (17 DTR G-4, 1/27/12).
Instead, the budget would reduce the value of itemized deductions and other tax preferences to 28 percent for families with incomes of more than $250,000, and individuals making more than $200,000.
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Budget also Lays Out Tax Reform Principles, Includes Tax Hikes and the “Buffett Rule”
For the fourth time the President’s budget has devalued private giving by proposing a limit on the charitable deduction. The Alliance for Charitable Reform (ACR) and others in the nonprofit sector have repeatedly opposed this proposal because it will diminish a strong incentive to give to charity.
“The President is sending mixed messages to the charitable community. On one hand, he wants to limit the charitable deduction. On the other, he wants millionaires to continue to give to charity while also paying higher taxes. ACR believes, and many others in Congress agree, that we should encourage and incentivize private charitable giving,” said Sue Santa, senior vice president of The Philanthropy Roundtable. “Charities are being forced to do more with less. The charitable deduction encourages people to give and now is not the time to experiment with it. We are hopeful that through this budget process, President Obama and leaders in Congress can come to an agreement that both encourages philanthropy and is good for our country”
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Further Reading
Consider This…
So we wonder, what do people think when they hear the President talking about the Buffett Rule?
Well of course all of you astute readers know that the Buffett Rule is all about billionaire Warren Buffett’s tax rate and not about a salad bar that goes on for miles. President Obama’s basic premise behind the Buffett Rule is this: millionaires and billionaires should not have a lower tax rate than their secretaries, the police officer that protects them or the teacher that educates their children.
Some wonder how that that scenario could be possible. It’s possible because…
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The latest edition of the ACR newsletter is available below. Here are highlights:
Upcoming Event Summit for Leaders
Washington Roundup:
- Tax Proposals
- Payroll Tax Cut Extension
- Senator Grassley’s Commission
Consider This:Buffett or Buffets – Our take on the new tax restrictions
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Three-fourths of Americans Support Tax Incentives for Charity
WASHINGTON, D.C.— A new study on attitudes toward charitable giving shows overwhelming support for private giving to charity as well as support for the charitable deduction. This study comes on the heels of the President stepping away from his previous proposals to limit the charitable deduction.
“The results of this survey reflect what ACR and the nonprofit sector know to be true: the charitable deduction and incentives to give are important,” said Sue Santa, senior vice president for public policy at The Philanthropy Roundtable. “We hope the President and Congress recognize the importance of this incentive to give in the same way the American people do.”
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