United Jewish Communities is joining the Orthodox Union in expressing concern about a provision in President Obama’s 2010 budget that would lower the charitable deduction taxpayers making more than $250,000 can take from 35 percent to 28 percent. Here’s William Daroff, vice president of public policy and director of UJC’s Washington office:
I am troubled by the provision in the Administration’s budget proposal that would reduce the value of the charitable contribution deduction for some taxpayers. For almost 100 years the tax code has contained such a deduction that has been a vital source of funding for charities that provide vital and viable services to people in need.
At a time when charities are literally going bankrupt, are seeing a huge increase in the demand for social services, and a simultaneous decrease in resources to fund programs governmental policy should be to incentivize charitable donations – not creating more reasons for donors to forgo making contributions.
Numerous studies confirm that any reduction in the tax benefits available for charitable giving will have a significant negative impact on giving. During the current economic downturn which has forced nonprofits to do more with less, any proposal which would result in a decrease in private giving will be a disaster for America’s charities, and for those who depend upon them.