Charitable coalition launches new website

The nonprofit sector has been on edge over the status of the charitable deduction for much of President Obama’s time in the White House.

ADVERTISEMENT
Obama has long proposed capping the value of itemized deductions at 28 percent instead of the top marginal tax rate, which now stands at 39.6 percent. The wealthiest are the most likely to use the charitable deduction, at a time when Democrats are generally seeking more revenues from the highest earners to reduce deficits.

Top officials from both parties also continue to push to comprehensively reform the tax code, a process in which tax breaks like the charitable deduction could be used to offset the cost of lowering tax rates.

The charity sector has long said that a less generous incentive for contributions will lead to less giving at a time when nonprofits are being asked to fill gaps in the safety net that governments are no longer addressing.