On October 18, the U.S. Senate Finance Committee held a hearing titled “Tax Reform Options: Incentives for Charitable Giving” partially in response to the ever-changing dynamics regarding proposals for tax reform, job creation, and deficit reduction swirling around the Nation’s Capital.
Lowering and capping the value of tax deduction to charities for the top wage earners under the tax code has been proposed by the Obama Administration in recent years to help raise revenue to help curb national deficits, pay for the health care reform and fund the now scaled-down American Jobs Act.
Since being removed from the jobs bill, treatment of itemized deductions such as the charitable deduction has become part of the growing dialogue about tax reform, sparking heated debates on whether a cap on such deductions would have a negative effect on the giving patterns of donors to charity and giving rise to the committee hearing.
The nonprofit arts sector (including Americans for the Arts) has been working closely with such organizations as Independent Sector, the Alliance for Charitable Reform and the Council of Nonprofits to ensure that any changes to charitable giving not be negatively impacted especially during the economic downturn. Read the rest of this entry »