Senators Remove Charitable Deduction Cap Proposal From Jobs Bill

In response to an announcement by Senate majority leader Harry Reid (D-Nevada) that a provision in the American Jobs Act capping the charitable deduction at 28 percent had been removed from the bill, Independent Sector is calling on charities and foundations to remain steadfast in their efforts to block similar attempts to cap or eliminate tax incentives for charitable giving.

According to IS president and CEO Diana Aviv, nonprofit organizations reached out vigorously to lawmakers to share their concerns about such a cap and to explain why tax incentives designed to encourage charitable giving are critical to nonprofits and the communities they serve. But while lawmakers in both major parties indicated they do not support a lower cap on charitable deductions, such a cap has been put forward by the Obama administration four times as a source of revenue that could be used to help reduce the deficit and pay for other priorities. Indeed, while Reid removed the provision from the jobs bill, it remains in the White House's formal recommendations to the Joint Select Committee on Deficit Reduction, or so-called "Super Committee."

"Our message that the charitable deduction spurs the giving that enables nonprofits to create jobs and provide critical services has been validated," Aviv said. "We must continue to voice our strong objection to any proposals that would limit charitable giving incentives and harm the people served by the nonprofit community."

"Charitable Deduction Cap Removed From Senate Jobs Bill" Independent Sector Press Release 10/07/2011.