Tuesday, February 2, 2010

The Obama Budget and Charitable Contributions


President Obama's latest budget (for fiscal 2011) includes the controversial proposal of lowering the amount those in the highest tax brackets can deduct for charitable contributions. As you probably remember, this idea was floated last year and was met with great resistance from many in the non-profit community. Charity Navigator President, Ken Berger, was quoted in regards to this issue on CNN last year. As the Chronicle of Philanthropy reports, this policy coupled with the increase in overall tax brackets, will cause the wealthy to have to pay more in taxes while at the same time getting less of a benefit from their charitable giving.

3 comments :

Astraea said...

First the government cuts funding to the arts, and now it wants to make it less desireable for major donors to "pick up the slack"?! This administration really is socialist; cutting off its nose to spite its face!

Dede said...

Since the government may be on a tight budget for the next ten years,with Congress at cross purposes, and the possibly frightening effects of lobbying amplified, then that leaves it up to interested individuals to get good things done, whether it be helping people, protecting endangered species, or building for the future. Our greatest hope, for now, is in charitable giving, so I think that limiting that would be really depressing.

Linda Sprankle said...

Since the Obama proposal applies to the highest tax bracket donors, I wonder how much of an impact there would actually be. For example, for the gift of $1,000, $10,000, $1 million or $100 million, what exactly would be the effect of a reduction in the tax benefit under the proposal? Does anyone know?