Legislative Correspondence on this Issue

Tell Congress to Protect the Charitable Deduction

Will Congress take away the charitable giving incentive that supports the work of all charitable nonprofits?
That is one of the most frequent questions we at the Pennsylvania Association of Nonprofit Organizations receive from our members, the public, and the news media. This action alert allows you to help shape the answer. Please sign onto the nonprofit community letter calling on our federal office holders to protect the charitable giving incentive.

Tell Congress to Protect the Charitable Deduction
Help us make the case to Congress that it must not take away the charitable giving incentive. Changes being considered by Congress threaten the ability of nonprofit organizations to serve those most in need and to continue to strengthen our communities.

Background
Federal tax law currently encourages individuals to give to the charitable organizations whose missions they support by providing an itemized deduction. Maintaining the charitable giving incentive is essential to the ongoing work of nonprofit organizations in delivering needed services, enhancing quality of life, and uplifting the spirit of faith, innovation, and inspiration in local communities across America.

Policymakers in Washington - now and for the foreseeable future - are focusing on how and how much to reduce the federal budget deficit through spending cuts, entitlement reforms, and tax increases and reforms. The President, Senators, Representatives, bi-partisan commissions, and think tanks have all put forward plans to address these issues, and all propose changing the charitable deduction in one way or another. Yet, no one knows the true impact that any of these proposals will have on the ability of nonprofits to raise the resources needed to provide the programs and services that fulfill their missions.

Regardless of political party or philosophy, politicians presume that nonprofit organizations will just step in to fill the gaps and address the needs in our communities. In all likelihood, Congress will cut federal spending and reform tax laws and entitlement programs in ways that curtail the ability of nonprofits to maintain programs and services, much less to expand them to meet the increased needs. We must be able to count on the current tax incentives for charitable giving if there is to be any validity in the presumption of policymakers that nonprofit organizations will be there to fill the gaps.

Read the nonprofit community letter. Sign on so your voice is heard. Learn more about the issue. By signing onto this letter you can lift the voice of millions in communities across the country who rely on nonprofits and the resources provided by charitable donations.

Voice Your Support for the Charitable Deduction

Independent Sector delivered a letter to the President and Congress on July 15, 2011, and this open letter ran as a full page ad on page 5 of POLITICO on July 18.

PANO was one of the agencies that signed-on in support of Independent Sectory´s position. Click on the link above for more details and to add you agency´s name to this letter.

Op Ed Piece Sacrificing Charitable Tax Deductions – “Wrong Thinking”


by Joe Geiger, CAE


Centre Daily Times


The message coming out of Washington recently would lead one to believe that if we simply did away with tax deductions, we could provide a material reduction in our nation´s deficit problem. Consider who would benefit from elimination of such deductions. Not the person volunteering at the local fire department or emergency services. Not the people benefitting from homeless shelters or food banks. Not the people who desperately need welfare support. Not the cultural community. In fact none of the services that provide quality of life in the community will benefit. Indeed, only government would benefit.


Healthy communities are like a three legged stools. The legs, government, business and community benefit must be balanced and strong in their own right, working collaboratively to perform their purpose. Tax deductions allow government to be less occupied by quality of life issues so that it can focus on the issues intended for government. Tax deductions incentivize citizens to support local community benefit projects that are critical in America´s design. Government thinks they know how to allocate our money better than us.
A Gallop USA Today Poll in April of this year tells us something about the support for charitable tax deduction. “78% of those who claim a charitable tax deduction and 62% who do not claim a charitable tax deduction are opposed to its elimination.” Gallop points out that “the elimination is complicated by the high levels of opposition to eliminating tax deduction among those who do not personally benefit… a group that in theory could be supportive.” The report further goes on to say that “72% of registered Democrats, 73% of registered Republicans and 65% of Independents are opposed to the elimination of the charitable tax deduction.”


A radical change to the charity tax deduction will unbalance the system. My experience is that people are motivated by the request for contributions. Americans value the services provided by community benefit organizations. The tax deduction further incentives donors to stretch their gift. Eliminating or reducing charitable tax deductions is wrong thinking.