Oppose Cap on Deductions for Charitable Donations

Help Nonprofits Across the Country Oppose the Proposed Cap on Charitable Deductions Learn More and Add Your Voice Today! As New York's statewide association of charitable nonprofits with over 3,000 members, the New York Council of Nonprofits, Inc. (NYCON) is strongly urging our Representatives and Senators to oppose efforts to include charitable deductions in an overall cap on itemized deductions and to oppose any other efforts to reduce current levels of charitable deductions. Already Doing More With Less... Community nonprofits, including those considered faith-based, are at the front lines of protecting and strengthening individuals, families and their communities and simply do not have the capacity to bear more burdens associated with ill-advised and sometimes arbitrary withdrawal of federal, state and local governments from domestic programs. During this recession, the workload of many of the state's nonprofits has increased as poverty levels have risen. Research has shown that nationally the demands on the nonprofit sector have soared since at least 2008, increasing 73% in 2008; 77 % in 2009; 77% in 2010; and 85% in 2011. Regarding the proposal of including charitable deductions in the pot of an overall cap of itemized deductions, this will not only be harmful to the good work of charities but is unfair. How Will This Affect Nonprofits? Consider that charitable deductions are different from the other itemized deductions in that the public, not the individual taxpayer, benefits from the expenditure (unlike with mortgage interest, gambling losses, etc.) A cap on itemized deductions would be consumed by fixed-cost deductions being the "first-dollar in" such as mortgage interest and state/local taxes, leaving little or no room under the cap for discretionary charitable gifts. Charities in high tax states, such as New York State, are particularly at risk. In these times, we urge Congress to consider policies that encourage charitable giving, not discourage donations. We ask you to urge our elected officials to oppose legislation that threatens the capacity community nonprofits to acquire the charitable resources needed to better the lives of people and the communities they live in. To Add Your Voice to Those Opposing this Cap, Click Here To learn more about the potential impact of the "Fiscal Cliff" on nonprofits, click here.