« Sudan's Bashir Boots Aid Agencies | Main | 9-Year-Old's Abortion Draws Catholic Censure in Brazil »
March 6, 2009
Charities Fight Back on Obama's Deduction Reduction
Already hurt non-profits worry about a further decrease in donations.
President Obama's budget calls for a decrease in the amount of tax savings that wealthy donors (those who earn more than $250,000 per year) can claim after giving to charity. The budget estimates the new rule would bring in about $318 billion over ten years. This means that those in the 33% or 35% tax brackets would only get to claim 28% of the donation as a tax brake.
But charities and their supporters in Congress don't much like the idea. "After objections from Democratic lawmakers, Treasury Secretary Timothy Geithner appeared to suggest at one point Wednesday that the administration was willing to consider dropping or modifying the proposal," reports The Wall Street Journal.
Charity Navigator says it sees a huge jump in donations in the days before January 1, as donors adjust their giving for tax purposes. The Indiana University Center on Philanthropy estimates the new rules would decrease giving by nearly $4 billion, at 2006 giving levels.
Churches and other religious groups, whose services aid the increasing numbers of needy and who are already doing more with less, are likely to increase their pressure on the White House as the budget debate draws on.
Comments
Under socialism, we have no need for charities or God.
We have Obama!
Viva el nuevo Fidel!
Unemployment under socialism is 10% in good times and 15% in bad times
so we are in excellent shape.
Posted By: Obama Fidel Hugo | March 6, 2009 9:26 AM
Isn't giving supposed to be a sacrifice, not a deduction?
Posted By: Mike | March 6, 2009 3:30 PM
Come on my land with your socialism.
Posted By: Hogs | March 8, 2009 5:45 PM
Remember that it is all God's check book. So the inpact on the allowable deduction for a charitable contribution is also an impact on the amount available for other contributions.
Here is another thought. Measure the effective management of a dollar in the typical charity vs. a dollar used by government programming to get the same job done. When a dollar enters the federal coffers it loses 25% to bureaucracy before it returns to the local scene. Then it will diminish again as it is nibbled to death going through the state/local bureaucracy.
Giving shouldn't be stupid or wasteful.
By the way, giving is supposed to be cheerful.
Posted By: Mark | March 9, 2009 4:09 PM
Giving is supposed to be a sacrifice... and, for those who give, it is ALWAYS a sacrifice. They are doing without something to give that money. But a tax deduction is a way to increase the value of that giving by allowing those who give to be more generous.
Let's get one thing clear... this wealth envy is not an attractive trait, or one that is scripturally supportable. I don't know anyone, who is wealthy, who has not worked for that wealth. Nor do I know anyone who is diligent, if able bodied, who cannot gain wealth of their own by working and making wise choices. Yes we need to help those less fortunate than ourselves... but we are never to take something from someone who has earned it, by force, and give it to someone else of our own choosing.
I know that what I'm saying is incomprehensible to those who have a more socialist mindset... But work should carry with it the reward for that labor. If our nation is to remain a beacon of hope for the temporal world, then there must be attention and reward given to incentive and integrity. Our current growing welfare economy strips that incentive and demonizes diligence and hard work.
Our media promotes slothfulness and anti-social behavior on one side of the coin and altruistic uses for other people's money on the flip side. No wonder there is such confusion among the youth about what to do with their life and education.
Many of us were brought up to believe that our actions had consequences. Protecting people, or corporations, from the consequences of their actions leads to the demise of all that holds the fabric of freedom and civil society together.
Let's encourage people to give, instead of punishing them. The government NEVER does better at helping the "less fortunate" than the non-governmental organizations. Why? Because the NGOs know the value of a dollar... the government does not. The NGOs follow up on the cases of those they help... the government does not. The BGOs encourage progress in those they help... the government does not.
See a trend there?
Posted By: Allan Clarke | March 9, 2009 5:07 PM
So thankful the issue of faith-based donations is being brought before the collective; i.e. since the 1970s we have asked CHRISTIANITY TODAY to share with their readers a 23 Million Dollar Religious Rico in Denver, Colorado. A text-book is being written now for students of all disciplines and the articles from CT will be included - asking the students to write to CT to bring such needed healing to the surface.
The War Widows
Posted By: Chaplain Mary Murphy | March 9, 2009 6:57 PM
Why is the assumption by liberals that giving must be exclusively either a sacrifice or a deduction? The reality is that without the donations of the wealthy, the bulk of charities will die on the vine. What I find repugnant with liberals is this notion that a tax deduction somehow cancels out the human heart's motiviation to help their fellow man. It does not. However, a tax deduction does make it easier for the motivations of the human heart to be realized. What is wrong with that?
Posted By: elsa | May 9, 2009 4:24 AM