« ANNOUNCEMENT: Annenberg Foundation Launches Leadership Development Program for L.A. Nonprofits | Main | Water, Water Everywhere, But Not a Drop to Drink »

Just Say No (to Reducing Value of Charitable Deduction)

December 02, 2009

That's the consensus view among charity fundraisers, according to the results of an online Quick Poll conducted by the Association of Fundraising Professionals from October 20 - November 30.

Under a proposal that has been advanced by the White House, individuals earning more than $250,000 annually would have the value of their charitable deduction reduced by as much as 20 percent.

The poll asked: Will the White House proposal to decrease the deduction for charitable giving to help pay for healthcare reform hurt your organization's fundraising?

The findings:

  • 66 percent of respondents said the proposal is a bad idea
  • 56 percent said a reduction in the amount donors could deduct would hurt their organization
  • 35 percent said their organization would be "hurt a lot"
  • 14 percent agree with the proposal
  • 11 percent said their organization would be unaffected
  • 18 percent were undecided

The AFP position on the proposal is unambiguous. AFP president and CEO Paulette Maehara: "While people give for many reasons, the fact is that incentives for giving -- such as the charitable deduction -- play an important role in how much people give, especially as the amount of the gift grows. It simply makes no sense to enact this proposal when charities are already facing difficulties in raising the money they need to provide critically needed programs and services."

What do you think? Would a reduction in the charitable deduction result in less giving by those affected? Does the current system reward "unfairly" reward high-net-worth individuals, large charities and tax-exempt institutions, and/or big capital campaign gifts? Would the proposal be more palatable if it kicked in at a higher annual income level (say, $500,000)? And what are the chances of anything like this being passed by Congress in 2010?

Use the comments section to share your thoughts....

-- Mitch Nauffts

« Previous post    Next post »


Feed You can follow this conversation by subscribing to the comment feed for this post.

Posted by Dawn Kwan  |   December 02, 2009 at 01:25 PM

Hi Mitch,

I really like your blog post, and I think it speaks about the trade-off of public or private spending on social services. I'd like to invite you to check out a new social venture called Philanthropedia at http://myphilanthropedia.org. They identify expert recommended top nonprofits in different social areas, so that people can donate with confidence and with ease.

Warm Regards,
Dawn Kwan
Manager of Nonprofit Profiles & Social Cause Expansion
650 868 0525

The comments to this entry are closed.

Quote of the Week

  • "[L]et me assert my firm belief that the only thing we have to fear is...fear itself — nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance...."

    — Franklin D. Roosevelt, 32nd president of the United States

Subscribe to PhilanTopic


Guest Contributors

  • Laura Cronin
  • Derrick Feldmann
  • Thaler Pekar
  • Kathryn Pyle
  • Nick Scott
  • Allison Shirk

Tweets from @PNDBLOG

Follow us »

Filter posts