In the midst of delivering programs, raising funds, meeting with partners, working with your board and the many “all other duties as assigned” it is difficult to stay tuned in to and informed about all of the trends and activities taking place in the nonprofit and philanthropic sector that have an impact on our work.
There are many:
- Increased demand in the face of declining government resources
- Greater nonprofit regulation
- Growing class divides; increased first-time human service users
- Diversification of corporate structures to achieve social missions including the L3C
In my opinion (isn’t that the point of a blog), one of the most important issues facing our sector today is the debate over the income tax charitable deduction. The Senate Finance Committee is currently reviewing this policy which dates back to 1917. Here are some important details:
- In 2010, individual giving was nearly $212 billion out of $291 in total giving (individuals, foundations, corporations, etc.0
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The after-tax cost of giving is the value of the gift net of the amount of the tax benefits received. For example, for every dollar given to a charity by an itemized taxpayer in the 28-percent marginal tax bracket, the after-tax cost of giving that dollar is 72 cents - Studies include empirical evidence regarding the financial incentive for individual donors to give to charitable organizations
- Estate and gift tax charitable deductions could be disproportionately impacted by significant changes to the current tax policy
To learn more or keep up on this issue go to: http://www.cof.org/templates/311.cfm?ItemNumber=18389&navItemNumber=16117#supercommittee
Question: How are you weighing in on this issue?
