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Talking to Donors About Obama’s Charitable-Deduction Plan

March 12, 2009, 5:09 pm

How should fund raisers handle questions from major donors about President Obama’s proposal to lower the deduction wealthy taxpayers receive for donations to nonprofit groups?

In a discussion with Chronicle readers about Mr. Obama’s proposal, Bruce Flessner, a Minneapolis fund-raising consultant, offered three ideas:

Nothing is certain: “As we talk with individual donors, we should remind them that the proposals are still in the early stages,” Mr. Flessner said. “The tax rates have not changed and any proposal to change deductions is still being discussed.”

Focus on mission: “We know that they did not make their gifts for tax purposes but because they believe in our mission. We also know that they enjoyed the tax deduction and it may have helped motivate the size of the gifts and shape other financial decisions,” he said. “We hope we will continue to earn their respect, their trust and their gifts.”

Stop and listen. “For some donors, they don’t believe this will ever come to pass. They aren’t concerned. For other donors, they see this as another obstacle and will ask questions. For yet other donors it will trigger other concerns they have,” Mr. Flessner said. “By listening carefully, you will learn how strongly they feel about shift in the tax code and you should also learn whether they are using uncertainty as an excuse to delay a decision versus being a real issue.”

Is your organization fielding questions from donors about Mr. Obama’s tax plan? If so, how are you responding to their questions?

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