Eleventh-hour talks in Washington to avoid impending tax increases and spending cuts known collectively as the “fiscal cliff” have nonprofits on edge.
Representatives of the Charitable Giving Coalition, comprised of about 600 organizations including some of America’s most active charities, descend on Capitol Hill Dec. 4 for two days of lobbying members of Congress about making sure that any federal budget deal does not eliminate or change the deductibility of charitable gifts.
The White House wants to end Bush-era tax cuts for the wealthiest Americans. Republicans in Congress propose raising revenues by cutting loopholes and entitlements. Both sides have mentioned a possible middle-ground solution of capping the amount of income that people who itemize their taxes can claim as a deduction for charitable giving.
President Obama has advocated capping the charitable deduction at 28 percent for couples making more than $250,000, people who now may claim deductions as high as 35 percent.
During the campaign, Republican presidential candidate Mitt Romney offered an alternative approach that would limit all personal deductions to $25,000, including those taken for charity…read more