New Limits On Tax Deductions May Reduce Donations, Charities Fear
WASHINGTON (AP) — Charities and nonprofit organizations are worried that new limits on tax deductions for high earners will hurt donations just as charitable giving is starting to rebound from the depths of the recession.
Experts doubt the new limits on deductions will have much impact on giving, but some major nonprofit organizations fear they’re a sign that the charitable deduction is no longer sacrosanct on Capitol Hill, just as Congress is promising a broader effort later this year to overhaul the tax code.
How Charities Won a High-Stakes Battle on Donor Tax Breaks
By Doug Donovan and Suzanne Perry
Washington
The threat that a deficit-cutting Congress might limit the value of the charitable deduction has ignited a brand of advocacy that is rarely seen in the nonprofit world.
Hundreds of charities across the country contacted lawmakers last month to urge them to reject proposals they say would dampen giving. Nonprofit associations have formed coalitions, sent lobbyists to Capitol Hill, paid for advertising, and met with White House officials.
Key Players in Fiscal Cliff Tax Issues
By Doug Donovan and Suzanne Perry
As Congress haggled over ways to avert the “fiscal cliff,” the White House asked nonprofits to support its efforts to raise taxes on the wealthiest Americans to counter Republican efforts to reduce the budget deficit mostly through spending cuts. Some groups agreed to make President Obama’s case to their supporters, while others chose to avoid what they feared could give a partisan taint to their efforts to prevent limits to the charitable deduction.