Take Action Today to Oppose Any Tax Reforms That Would Harm Charitable Giving!
(Oct. 18, 2011) Today, the Senate Finance Committee held a hearing regarding the charitable deduction and discussed alternatives to the current itemized deduction. Testimony from the hearing can be found here.
The committee discussed various proposals such as implementing the Obama Administration’s proposed 28 percent cap on itemized deductions, replacing the deduction with a tax credit and imposing a floor that would only allow a tax break for charitable contributions that exceed 2 percent of adjusted gross income.
AFP is concerned that these reforms would impede charitable giving and create a barrier to charitable contributions that fuel charities’ philanthropic missions. A recent study reported in The Chronicle of Philanthropy suggested that the imposition of the 28 percent cap would reduce charitable giving by $2.9 billion to $5.6 billion. A study also indicated that a 12 percent tax credit could decrease donations by $9.7 billion to $24.6 billion. The Chronicle article can be found here. In its testimony during today’s hearing, the Congressional Budget Office estimated that a deduction floor of 2 percent of adjusted gross income would result in the loss of $3 billion in charitable contributions.
Senator Orrin Hatch (R-UT), ranking Member of the Senate Finance Committee, raised his own concerns during the hearing when he stated that “from my perspective the tax reform options being discussed today are options that target charitable giving concocted by those who, hungry for more taxpayer dollars to finance reckless government spending, are now casting their sights on the already depleted resources of charities and churches.”
A recently formed Joint Select Committee on Deficit Reduction will also consider changes to the tax code over the next few months. Those tax reforms could include some of the proposals discussed at the Senate Finance Committee hearing today.
AFP's opposes any proposed change to the itemized deduction (such as a cap or a floor) that would reduce charitable giving.
AFP is advocating on your behalf and reaching out to key Members of Congress, including House and Senate leaders and members of the Joint Select Committee on Deficit Reduction, the Senate Finance Committee and the House Ways and Means Committee to discuss changes to itemized deductions and the potential negative impacts on charities and charitable giving.
Make Your Voice Heard on Capitol Hill!
AFP urges its members to educate their Members of Congress about this extremely important issue. As a constituent, you represent a key voice that will be heard.
Engaging Networks has generously allowed AFP to use their online platform where you can contact your Members of Congress with the mere touch of a button. Please click this link to send an electronic letter to your House member and two Senators of your state.
Related AFP ResourcesPublic Confidence in Charities Rebounds Slightly
New Project to Raise Awareness of Charitable Sector
Canada Issues -- June/July 2004 Public Policy Update
Understanding How and Why Millennials Give
Benchmark Research on Fundraising Shows Contributions to Human Services Organizations (HSOs) Grew Faster Than For All Other Nonprofits