The Fiscal Cliff Frenzy Reaches Non-Profits

by Corinna Kirsch on November 29, 2012 · 2 comments Newswire

Image: Wikimedia Commons

Darn that looming “fiscal cliff”. We’re all worried about what will happen if a number of a laws, which, if unchanged, could result in tax increases and spending cuts that will affect our economy in 2013. Even non-profits have started stressing about how Congress’ upcoming actions to prevent “the most tedious conversation topic ever” might hit close to home.

They’re concerned that Congress will alter the current tax system, making it less appealing for people to give to museums, foundations, hospitals, universities, and the like. As it stands, the idea that Congress would place any additional caps on tax-deductible donations appears to have gained some traction across party lines. Even our President supports it, according to Alex Rogers, reporting on the issue for Time:

President Obama already supports limiting the amount of tax-free giving Americans can do; his proposed 2013 budget would limit the value of all itemized deductions to 28% for families making $250,000 or more a year, or for individuals making $200,000 and up.

Currently, you can deduct up to 35 % of your income for charitable deductions. That’s a 7% change, which is a lot when you look at the numbers. Charitable deductions are the government’s 9th largest tax expenditure, and the sheer size of giving in the budget pie has led some non-profits, like the Charitable Giving Coalition, to assert that over $5.6 billion annually would be lost if these cuts were enacted.

Non-profits already suffer from cuts to government spending each year and at this point, they can’t afford to lose more revenue. This is a blow they don’t need.

  • http://www.facebook.com/Balhatain Brian Sherwin

    Considering that we have a President that views donations as tax loopholes for the rich… well, you get what you vote for. Reap it.

    • http://www.facebook.com/donald.frazell Donald Frazell

      And they are. Suckit up and deal with reality folks, we lived off the national credit card for a decades, time to pay up and it will hurt everyone. The artscene wasn’t complaining when living off of it rather than your own real labor, not some make believe “hardships’ avoiding real j0bs. I didnt so still working. And willing to pay as long as everyone else does as Warren Buffet ahas put it. Follow the money them thats got, pay. Period.
      They got most of it by tax cutting as is rather than building real viable businesses.
      ie KB Homes and Pomegranate juice.

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