Call to Action: Confronting Severe Challenge to Charitable Deductions, Spending Programs

National Council of Nonprofits 

Call to Action: Confronting Severe Challenge to Charitable Deductions, Spending Programs

Charitable nonprofits are truly at risk of losing the charitable giving incentive in the Lame Duck session of Congress. Now is the time to call on our 25,000+ nonprofit members – and their board members, staff members, volunteers, donors, and others you know with email addresses – to raise their collective voices in telling Congress to protect the charitable deduction and stop the arbitrary spending cuts known as sequestration set to go into effect on January 2, 2013.

Congress and the President are negotiating how to avert the $600 billion in spending cuts and tax hikes that take effect at year’s end if they fail to take action. One proposal rapidly gaining support (particularly - but not only - among Republican Senators) is capping itemized deductions, including for charitable donations, at $15,000, $17,000, or $25,000 for individual taxpayers. Such a cap would eliminate any tax incentive for donations to charities. The big fixed-cost deductions, such as for mortgage interest (national average of $10,640 in 2010) and state/local taxes (national average of $11,593 in 2010), that combined total $22,233, would eat away the entire deduction at the levels being discussed, leaving no room for discretionary gifts to the work of charities. Even if they increase the cap to $30,000 or $40,000, that leaves very little incentive for giving. Larger institutional nonprofits with dedicated development staff will then have an advantage to squeeze out smaller charitable nonprofits for the limited dollars then available.

DO SOMETHING TODAY! Click on the link below to learn more and to see what actions you can do. 

Call to Action Link