For the third time, nonprofits and religious organizations are pushing back.
Many religious nonprofits, which supplement their budgets heavily with donations from wealthy donors, worry that reducing tax write-offs for charitable donations will lead to less giving, said Diana Aviv, the president and CEO of Independent Sector, a coalition of nonprofit organizations. She said experts estimate the proposal would reduce charitable giving by $7 billion.
“The question is, ‘Do tax incentives work, do they stimulate more money than they cost?’” Aviv said.
Obama’s proposed budget for fiscal 2012 includes a 30 percent cut in itemized deductions for high-income taxpayers. Individual donors making more than $200,000 or families earning more than $250,000 would be able to claim 28 percent of any donation as a tax deduction, rather than the current 35 percent.
