Go to content Go to navigation Go to search

February 26, 2009

Tax Expert: Obama Plan Would Have "Exponentially Negative Impact"

President Barack Obama’s plan to decrease the amount of money wealthy taxpayers can deduct from their tax returns for charitable donations would be “another nail in the coffin” for nonprofit groups, according to one prominent observer.

Sheldon Steinbach, a lawyer in Washington who represents colleges and universities, said the proposal comes at a time when many nonprofit groups are already facing decreased resources. As a result, the plan could have drastic consequences for many groups.

“Any disincentive to charitable giving, especially in the current economic climate, will have an impact far beyond the black letter law,” Mr. Steinbach said. “It will have an exponentially negative impact.”

According to news reports, the president is calling for a cap on itemized tax deductions for Americans who earn more than $250,000 annually.

Such a move would reduce the value of tax deductions for people in this income bracket by about 20 percent, the Washington Post reports.

“There’s no question this will have a significant impact on charitable giving to colleges and universities in this country,” Mr. Steinbach said.

For more discussion about what this plan would mean for fund raising, visit our Forums page.

— Suzanne Perry and Peter Panepento

Thursday February 26, 2009 | Permalink

Commenting is closed for this article.

Previous: Nonprofit Leader Tapped For State Department Job
Next: Aspen Institute Plans Meeting on White House Social Innovation Office

---

Copyright © 2009 The Chronicle of Philanthropy