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"Fiscal Cliff" Charitable Deduction Debate
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Overview

To place a percentage or aggregate cap on the value of the charitable deduction. Read more at www.independentsector.org.

Independent Sector is the national coalition of nonprofits and foundations that advocates for the charitable sector and equips them to succeed. 


Our Position

Oppose

  • Research suggests that capping the charitable deduction could reduce charitable giving by as much as $7 billion a year.
  • Federal and state budget cuts have already diminished the capacity of nonprofits to meet the growing needs of diverse populations.
  • The charitable deduction leverages a nearly 3-to-1 ratio, i.e. when an individual in the highest tax bracket donates $1,000 to nonprofits, the government foregoes $350 in tax revenue, but communities benefit from the entire $1,000 gift).

Legislative Status

While the American Taxpayer Relief Act of 2012 (H.R. 8) does not cap itemized deductions, it does reinstate the Pease provision which limits deductions on incomes above $300,000 for joint filers and $250,000 for individuals. Read more at www.independentsector.org.