President and Nonprofits Battle Over Charitable Deductions

Some of the nation’s foremost charities are locked in a battle with the White House over President Obama’s push to limit the nearly century-old tax deductions on donations to nonprofits, reports The Washington Post.

In a series of talks with charity leaders from groups that include the American Red Cross and the United Way, President Obama has asked charities to accept higher taxes on wealthy people and reduce their allowable deductions for charitable gifts. Early indications are that charitable groups will favor the tax rise, but they worry that limiting deductions will have a devastating effect on charities’ coffers.

In other “fiscal cliff” news, charity leaders in central Pennsylvania worry that federal budget cuts will adversely affect them, and USA Today says that think tanks could be disproportionately affected by proposed limits on tax deductions.

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