05/22/2017

A Case to Expand the Charitable Deduction

A group concerned with budget proposals' impact on charitable giving has an idea

Independent Sector, a group that represents an array of 501(c)(3) nonprofits, says that current budget proposals could severely hurt charitable funding—but a change to the tax code could help solve the problem. With aggressive budget proposals coming out of Congress and the White House, a group concerned with the impact they may have on charitable giving has an idea.

Independent Sector says in a new report that current proposals could reduce giving between $4.9 and $13.1 billion. However, the group makes the case that the shortfall could be made up by expanding the charitable deduction to non-itemized tax returns.

According to the report, which used the 2014 Tax Reform Act introduced by then House Ways and Means Committee Chairman Dave Camp (R-MI) to estimate the potential effects of tax policies on charitable giving, this expansion would more than make up for the deficit created.

Please click here to read the complete article from Associations Now.