Category Archives: Giving
January 10, 2013, 9:14 am
The income-tax provisions adopted by Congress to avert the year-end “fiscal cliff” will increase charitable giving by an estimated 1.3 percent, or $3.3-billion, in 2013, according to a new Urban Institute analysis.
The boost will come mainly from the decision to increase the top tax bracket from 35 percent to 39.6 percent on income above $400,000 for individuals ($450,000 for married couples), the institute said.
Because the charitable deduction is tied to a person’s tax bracket, those donors will now save $39.60 in taxes for every $100 they give to charity. In other words, their gift will cost them only $60.40, down from $65 under the 35-percent rate.
People in the top 1 percent of income distribution will provide almost all of the higher giving, increasing their donations by an estimated 6.2 percent, the analysis found.
The study also took into account the decision to…
October 18, 2012, 3:09 pm
In an e-mail last night to her group’s membership, Vikki Spruill, the new leader of the Council on Foundations, announced a campaign to convey the value of philanthropy to lawmakers.
She painted a picture of philanthropy under threat from politicians who are looking for new ways to increase revenue.
“Both President Obama and Governor Romney have put forth plans that will affect giving, and Congress is eyeing all tax deductions as potential revenue raisers,” she wrote. “This would be a grave mistake and would negatively affect significant numbers of Americans.”
Since joining the Council in July, Ms. Spruill said, she has assembled a team of “seasoned political strategists, communications tacticians, and tax-policy experts with deep ties to federal policy makers.” The campaign will focus on educating lawmakers at the local, state, and federal levels, she said, showing them how…
April 13, 2012, 1:26 pm
President Obama and his wife, Michelle, gave nearly 22 percent of their income to charity in 2011, according to tax returns made public today.
The couple reported $789,674 in income and gave $172,130 to charity.
The largest gift was a $117,130 contribution to the Fisher House Foundation, a group that provides free or low-cost housing to military personnel and their families while they are receiving treatment at military medical centers. Mr. Obama has been giving the charity the after-tax proceeds of the sale of a children’s book he wrote.
The Obamas’ giving represents a bigger share of their income than that of the presumptive Republican nominee for president, Mitt Romney, and his wife, Ann, according to an estimate of their 2011 taxes, released in January. They reported they had given more than 16 percent of their income to charity in 2010 and 2011.
According to the Romney …
October 26, 2011, 12:05 am
President Obama’s proposal to limit the value of charitable deductions for the wealthy would cost charities less than $1-billion, according to a new study that gives the lowest estimate yet of how the president’s plan would affect donations.
The study, by the Center on Philanthropy at Indiana University, found that charities would face a much larger drop in donations if the proposed cap were combined with Mr. Obama’s proposal to end the Bush-era tax cuts for wealthy people. In that case, gifts by people who itemize their deductions would fall by more than $2-billion, a report on the study said.
The report characterized that as ”a relatively modest decline,” since overall giving to charities totals more than $290-billion. It added, however, that ”disincentives for individuals to engage in charitable giving may place additional strain on the nonprofit sector” at a time when…
October 14, 2011, 2:21 pm
The Senate’s powerful Finance Committee will play host to a hearing Tuesday that will discuss how some key proposals to change the federal tax code would affect nonprofits.
One of the key topics of discussion at the hearing will be the future of the charitable deduction—the write-offs that high-income people can get for their charitable donations.
The Chronicle recently produced a pair of videos that explain the charitable deduction—and what’s at stake if lawmakers decide to change how the deduction works. You can check them out below.
October 13, 2011, 9:44 am
President Obama’s effort to limit deductions for wealthy people, including those for charitable gifts, in his jobs bill may have died last week, but charitable deductions will be front and center in a Capitol Hill hearing next week.
The Senate’s powerful Finance Committee will host a hearing next week that will discuss how some key proposals to change the federal tax code would affect nonprofits.
Testifying at the hearing will be Brian Gallagher, president of United Way Worldwide, and Dallin H. Oaks, a leader of the Church of Jesus Christ of Latter-day Saints. Other witnesses include government and college scholars who have examined the charitable deduction.
The hearing will take place Tuesday at 10 a.m. Eastern time and will be broadcast online.
To see more about the charitable deduction, go to this special section of The Chronicle’s Web site.
October 6, 2011, 6:14 pm
President Obama’s plan to limit the value of charitable deductions for wealthy people would cost nonprofits at least $2.9-billion and perhaps as much as $5.6-billion, according to a study to be unveiled Friday.
Economists examined how people would be affected by Mr. Obama’s plan to limit to 28 percent the amount affluent people could write off in all itemized deductions. People in the highest income bracket now can write off 35 percent of their deductions, including those for gifts to charity.
Charities have been strongly opposed to Mr. Obama’s effort to limit the incentive to give, especially at a time when giving has dropped because of the bad economy.
The new research will be presented Friday at a conference by the Urban Institute’s Center on Nonprofits and Philanthropy and was one of several forthcoming projects paid for by a $1-million research grant from the Bill &…
September 15, 2011, 9:32 am
Nonprofits are gearing up to fight President Obama’s plan to pay for his jobs bill in part by limiting charitable deductions. Mr. Obama wants to limit the amount all wealthy people can write off for charitable gifts as well as housing, medical expenses, and other items.
Nonprofit leaders say that a curb on deductions will stifle giving and that charity write-offs make up only a small percentage of the money the federal treasury loses in deductions by the wealthy.
In 2009, 46.4 million taxpayers claimed the itemized deduction, with the deduction for charitable donations totaling an estimated $158-billion, according to the Internal Revenue Service. That total accounts for 13 percent of all of the itemized deductions claimed that year. By comparison, taxpayers claimed an estimated $442-billion in deductions for mortgage interest and $432 billion for state and local taxes and…