Join The NonProfit Times: or Become a member

Subscribe: Print Publication or Newsletter

Stay connected.
Stay informed.

Charitable Deduction Cap Pulled From Bill

By Mark Hrywna - October 7, 2011

A proposed cap on charitable deductions for people earning more than $200,000 annually was removed from the American Jobs Act by the Senate majority leader.

In an email to supporters this morning, Independent Sector (IS) President & CEO Diana Aviv reported that Senate Majority Leader Harry Reid (D-Nev.) announced late yesterday that he has removed the charitable deduction cap from the American Jobs Act.

“Our assiduous efforts to share with lawmakers concerns about a cap, combined with your outreach to members of Congress to explain why tax incentives for charitable giving are critical to nonprofits and the people in our your community, made a real difference,” Aviv wrote. “In fact, many lawmakers on both sides of the aisle have indicated that they do not support a cap on charitable contributions.”

Reid’s office did not immediately return calls for confirmation. However, William Daroff, vice president for public policy, Jewish Federations of North America, too, said it had happened. “I can confirm from my discussions on the Hill and with the Administration, that the Senate Democrats have pulled the proposal to reduce the deductibility of charitable contributions as a pay-for for the jobs bill,” said Daroff.

It was President Barack Obama’s fourth attempt targeting the charitable deduction as a revenue source, each time to pay for something else. The cap would have limited the deductibility of charitable contributions for those earning more than $250,000, from 35 percent to 28 percent. The cap has been replaced with a 5.6-percent surtax on individuals earning income of more than $1 million a year, which would raise $445 billion over 10 years, according to Aviv.

The Alliance for Charitable Reform (ACR), a project of the Philanthropy Roundtable, organized meetings yesterday with elected officials about the deduction cap, with as many as 40 nonprofit leaders from around the nation converging on Capitol Hill. In a letter last month to congressional leaders, including Senate Finance Committee Chairman Max Baucus (D-Mont.) and members of the Joint Select Committee on Deficit Reduction (“Super-Committee”), ACR asked that that the charitable deduction be preserved at its present level.

The cap on charitable deductions is still part of the president’s formal recommendation to the Super-Committee, Aviv said, which is charged with finding at least $1.2 trillion in deficit reduction by Nov. 23.

“We continue to be concerned about the Administration’s continuing focus on placing a stumbling block in front of the abilities of charities to raise funds, as we continue to serve as a vital safety net for the vulnerable who continue to suffer during this downturn,” said Daroff. “We anticipate seeing this flawed proposal again during the Super-Committee process, and we will continue to fight it — and defeat it.”


Sponsored Podcasts

Welcome to the Raise & Engage podcast, a filters-off series for nonprofit professionals hosted by Blackbaud's straight-shooting expert Danielle Johnson Vermenton. During this open-mic session, you’ll hear honest advice to help YOU do more for your cause.

Episode 6: The Power of ‘No’ at Work|| daniellejohnson-76

You have a job description, but on any given day, you're probably doing dozens of things outside the scope of that description. Combine that with the challenge of a fast-paced environment and the shifting priorities of funders, colleagues, and board members and it’s easy to fall short of doing your best. By being mindful of your limitations and capacity—and saying “no” when your plate is full—you can actually do more for your cause. In the sixth installment of the Raise and Engage podcast Danielle Johnson and Robin Anderson discuss the power of saying “no” at work.

Episode 5: Professional Development: Getting Un-Stuck|| daniellejohnson-76

In the most recent episode of Raise + Engage, Danielle is back with Brian Reich from little m media to discuss how nonprofit professionals can stay motivated and energized in their day-to-day roles. Brian shares his experience working with nonprofits and the lessons and tips he's learn from and shared with them over the years, including tips for avoiding a professional rut, creating forward momentum in your career and pushing yourself outside of your comfort zone. If you're considering making a career move or want to ensure you're on the right path, you won't want to miss this inspo-packed episode!

Episode 4: Apps and Hacks to Stay (Mostly) Sane || daniellejohnson-76

Episode 4: Apps and Hacks to Stay (Mostly) Sane, is all about tips, tricks and tools for sanity. Blackbaud’s own interactive product marketer, Julia Lenz, joins host Danielle Johnson to share some high tech. (and no tech.) productivity tips to help nonprofit professionals stay sane in the crazy world of philanthropy.

Tune in to hear:

  • Tips for how to spend the first 30 minutes of your day
  • The benefits of 15 minute meetings
  • Why notebooks are still relevant to a successful organization
  • Ideas for better managing your inbox
  • Why you should take lunch outside the box
  • ...and much more!
Don’t forget to visit the #NoFilterNonprofit Hub afterwards to download our newest tip sheet10 Productivity Hacks for Nonprofits.

Episode 3: Tech. Connection: Solutions, Strategy, and Staff || daniellejohnson-76

Episode 3: Tech. Connection: Solutions, Strategy, and Staff In episode 3 of the Raise + Engage podcast, Danielle Johnson is joined by Chris Geady and William DaSilva, two IT experts in the nonprofit space, to talk technology integration for NPOs: when you need it, when you don’t, and how to do it successfully.

Tune in to hear:

  • When to say NO to integration
  • How to set your strategic plan before even looking at technologies
  • Ways to get your entire team on board
  • The importance of identifying a project lead
  • The RFP process - how it should and should not go
And William shares a story about a nonprofit that may or may not have still been using a typewriter. You don't want to miss this one!

Episode 2: From Socially Awkward to Socially Awesome! || daniellejohnson-76

According to Danielle Johnson, straight-shooting host of the Raise + Engage podcast series, if your staff members aren’t the number one advocates for your cause on social media, you’re failing. In the most recent episode, Danielle is joined by Blackbaud’s own social media guru Madeline Turner to discuss overcoming social struggles and creating a social ambassador program at your organization. This entertaining and insightful duo dishes on the importance of making your social media presence human, making the case for a formal social program to leadership, how University of Michigan turned a one time social media campaign into a long term social program, and how Madeline's mom unknowingly became a social ambassador on #GivingTuesday.

Episode 1: Corporate Culture & Development: Shake It Up! || daniellejohnson-76

In the premiere episode of Raise & Engage, Danielle is joined by three straight-shooting nonprofit rock-stars: Jodi Smith of Sanford Health Systems, Veronica Brown of Chicago Public Library Foundation and Ali Burke of Southlake Regional Health Centre Foundation. The group talks organizational culture, problem employees, why its important to celebrate and how to shake things up this year and build a better more authentic team that gets stuff done!


Stay informed, catch latest trends in the nonprofit space.

Subscribe to Our Free Newsletter

No obligation, unsubscribe at anytime.

Success! Check your email inbox.

Follow Us On Twitter

NPT 2016 Buyers' Guide

Newsletter Sign-up

click here to return to the previous page