The charitable deduction provides a major incentive for Americans to give to nonprofits around the country. Colorado Nonprofit Association has frequently been involved in protecting and expanding the charitable deduction by supporting bills and taking other legislative actions. Thanks to the efforts of nonprofits throughout the nation, Congress has not made any changes that weaken the charitable deduction.
American Jobs Act (2011)
The 2011 American Jobs Act proposed limiting itemized deductions to 28 percent for taxpayers earning $200,000 and up and included job creation incentives. On Sept. 20, we sent a letter to Colorado's members of Congress encouraging them to oppose changes that weaken the charitable deduction and to ensure nonprofit employers benefit equally from the legislation.
Fiscal Cliff (2012)
In 2012, Congress discussed the same limit on deductions for high income taxpayers or an annual dollar cap on all itemized deductions. Also, due to "sequestration," Congress was required to automatically cut federal programs across the board by more than 8 percent. This included many public services delivered by nonprofits through government grants and contracts as well as other federal programs that help the people that nonprofits serve. Both by reducing the charitable giving incentive and cutting federal programs, nonprofits would face increased public demand for services with fewer resources.
Tax Reform Conversations (March 2013)
We submitted written statements in 2013 urging protection of the chairtable deductioin in response to:
- A hearing held by the House Ways and Means Committee on Tax Reform and Charitable Contributions.
- A letter from Senate Finance Committee leadership announcing a "blank slate" approach that proposed wiping out tax credits and deductions prior to tax reform.
Several other national nonprofit associations took action as well: