• Sign-on today to this letter that urges President Obama and Congressional leaders to preserve the charitable deduction.
  
• See who else has added their name to the sign-on letter.
• View the full-page ad that ran in the July 18 edition of POLITICO.

Inform your community

• Write an op-ed for your local paper voicing your support of the charitable deduction. Incorporate IS talking points.

The Issue
Potential changes to incentives for charitable giving in the tax code have been part of deficit reduction and tax reform discussions for much of 2011, including a proposal offered by President Obama that would cap the charitable deduction at 28 percent for high-income taxpayers.

The charitable deduction is an important and effective incentive for giving, strengthening the nonprofit and philanthropic sector's capacity to meet the needs of our communities.

IS Position
Independent Sector advocates for policies that encourage Americans to contribute to the charitable causes of their choice by providing tax deductions for their gifts and tax incentives for volunteer service, removing tax obstacles to charitable gifts, and maximizing gifts from private foundations.

Independent Sector urges Congress to reject proposals to limit the value of itemized deductions for charitable donations. As nonprofit organizations struggle to meet increased demand for services and raise the necessary funds to meet those needs, Congress should seek to encourage all individuals, regardless of income and wealth, to give more to charitable organizations.

View and download the IS one-pager on the Charitable Deduction (PDF)

Independent Sector has signed onto a nonprofit coalition letter in opposition to the president's proposal to cap itemized charitable deductions at 28 percent for high-income taxpayers.

Background

President's FY 2013 Budget
President Obama’s FY 2013 budget outline includes proposals for tax changes for high-income earners, including a provision that would cap at 28 percent the value of itemized tax deductions for individuals earning more than $200,000 ($250,000 for families).  This is the fourth consecutive time the Administration has proposed the cap in its budget proposal.

President Obama’s Jobs Proposal
On September 8, 2011 President Obama unveiled his $447 billion proposal to spur job growth. The President proposes to pay for the American Jobs Act of 2011. The offsets include closing a number of corporate tax loopholes, as well as imposing a 28 percent cap on itemized deductions - including the charitable deduction - for individuals earning more than $200,000 a year and households earning more than $250,000 per year. The cap on individual deductions is expected to generate $410 billion in revenue over 10 years.

President Obama's Deficit Reduction Recommendations
President Obama has submitted formal deficit reduction recommendations to the Joint Select Committee on Deficit Reduction. The "balanced" proposal of tax increases, spending cuts, and mandatory program changes would reduce the deficit by $3.5 trillion over 10 years and includes a 28 percent cap on itemized deductions on high-income earners.

Read more background on the charitable deduction.

Research on the Charitable Deduction
Click here to learn more about recent studies and reports on the charitable deduction.