AGM continues to keep watch on policies that would impact the field of philanthropy. The federal budget proposed by President Obama for FY2105 again includes a proposed cap at 28% on the charitable deduction. As we stated in 2012, we continue to oppose any proposal to reduce or cap the tax value of charitable contributions. We are joined by many other leaders in the philanthropic community including the Charitable Giving Coalition (CGC), which issued the following statement regarding the President’s budget proposal: “If the 28 percent cap included in the Administration’s FY 2015 Budget were enacted, donations to the nonprofit sector could decline by more than $9.4 billion per year. That is more than the annual operating budgets of the American Red Cross, Goodwill Industries International, the YMCA of the USA, Habitat for Humanity, the Boys & Girls Clubs of America, Catholic Charities USA, and the American Cancer Society combined. This figure represents billions of dollars that would prevent America’s charities from fulfilling their missions and serving our communities and those in need.”
Read full press release
Additionally, Congressman Dave Camp, the new Chairman of the House Ways and Means Committee, released a comprehensive plan to reform the individual and corporate tax codes. Although many in Washington believe that Rep. Camp’s plan will not advance as written, it does includes a number of positions that should not be ignored. Most notably, Rep. Camp calls for a 2% floor on the charitable deduction, which would limit the donor from claiming a deduction for the full value of the donation.
AGM will continue to monitor the administrations’ proposed budget as it develops as well as any proposals for tax reform and keep our members informed of any call to action.