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The Threat to the Charitable Giving Incentive is Real

by Brenda Peluso

The Washington Post reports: “A GOP plan to raise taxes by $290 billion over the next decade would limit deductions for mortgage interest, charitable donations and state and local taxes as part of a deficit-reduction deal.”

The Chronicle of Philanthropy further reports that the charitable giving incentive remains at risk before the Supercommittee of Congress, citing a proposal by Martin Feldstein that would impose a 2% cap on all itemized deductions (e.g., for charitable giving, mortgage interest, and state and local sales taxes), which “would also reduce the incentive for charitable giving because once taxpayers reach the 2-percent cap, they would get no further tax break for their gifts.” So taxpayers earning $75,000 could reduce his or her taxes by only $1,500; and deductions for mortgage interest and state/local taxes would surely consume that amount.

TAKE ACTION today!

Protect those you serve in your communities by taking these two simple steps:

  1. Contact your U.S. Senators and Representative (find contact information and key messages here) by calling (202-225-3121), emailing, and/or tweeting. The core message: “The Supercommittee needs to make a clear statement in support of the charitable deduction and dislodge it from any proposals to cap or reduce the value of itemized deductions. Nonprofits cannot withstand any weakening of the charitable giving incentive, and governments at all levels cannot continue to cut public programs and expect nonprofits to fill in their gaps and pick up their slack.”
  2. Lift more voices to protect the charitable giving incentive by immediately encouraging all of your members, board members, staff members, volunteers, donors, service recipients, families, friends, and other people who care about the vital services and programs that nonprofits provide in local communities to immediately contact their federal policymakers.

Sample Tweets:

  • #Supercommittee: Support the #Charitable Deduction that is critical to #nonprofits you count on! www.givevoice.org

    Replace #Supercommittee with Senator #Snowe, Senator #Collins, Rep. #Michaud, and Rep. #Pingree

  • #Nonprofits benefit from the #Charitable Giving Deduction.  #Supercommittee needs to send a message not to cut or cap #deductions. www.givevoice.org
  •  Time is running out! Tell the #Supercommitte that cutting #charitable deduction would hurt our sector and communities! www.givevoice.org

    Replace #Supercommittee with Senator #Snowe, Senator #Collins, Rep. #Michaud, and Rep. #Pingree

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