WASHINGTON, D.C. – Any limits to the charitable tax deduction would have profound consequences for communities served by the philanthropic sector nationwide, the Charitable Giving Coalition said in response to the Senate Budget proposal released yesterday. The Senate plan proposes limits or caps on the value of itemized tax deductions, which includes the charitable tax deduction. (The Pease provision approved as part of the “fiscal cliff” agreement already limits deductions for certain taxpayers.)
Following is a statement from John Ashmen, president of the Association of Gospel Rescue Missions, on behalf of the Charitable Giving Coalition:
The Coalition is alarmed that the Senate’s proposed budget plan does not protect the unique value of charitable deduction, especially now as communities continue to struggle to overcome a bruising recession. We simply can’t afford to chip away at incentives that encourage charitable giving. Doing so will have profound consequences for our communities and vital efforts that heal, educate, innovate and more.
Let’s be clear. The millions of disadvantaged people who need the most support – not donors – will be hit hardest by limits or caps to the charitable deduction. We would put at risk billions of dollars in private donations and just transfer to the government funds that would otherwise go to charity.
Elected leaders certainly have to make tough decisions to address our fiscal challenges, but limiting the charitable deduction is no solution. We are determined to make sure lawmakers clearly understand that this century-old tax incentive is unique. It encourages giving, provides no financial benefit to the donor and helps meet critical community needs. The nation’s budget crisis is undeniable, but that is exactly why we should be creating more ways to encourage giving – not less.
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The Charitable Giving Coalition
Representing private and community foundations, their grantees and independent charities, the Charitable Giving Coalition’s members include United Way Worldwide, the Salvation Army, Catholic Charities USA, the American Institute for Cancer Research, the Association of Fundraising Professionals, Independent Sector, the Council on Foundations, The Philanthropy Roundtable, among others. Formed in 2009, the coalition is a broad cross-section of nonprofit organizations across the country, including both the nonprofit organizations themselves and the associations and umbrella groups that serve their needs. The coalition is dedicated to preserving the charitable giving incentive that ensures that our nation’s charities receive the funds necessary to fulfill their essential philanthropic missions. The coalition provides a unique and unified voice on Capitol Hill on issues affecting the charitable deduction, a voice composed of both direct lobbying and robust grassroots advocacy.