Saturday, March 7, 2009

Center on Philanthropy Estimates that Proposed Limits on Tax Deductions Could Cut Charitable Giving by $4 Billion

The Indiana University Center on Philanthropy estimates that if the president's proposed limits on tax deductions for charitable contributions go through, charities might experience a drop in contributions as large as $3.9 billion. The administration is proposing capping the rate at which families making over $250,000 may use charitable contributions as deductions in calculating their taxable incomes.

Still more chilling:
But the center cautioned that giving is far more likely to be affected by the condition of the stock market than by President Obama’s tax proposals. It noted that every time the stock market declines by 100 points, giving declines by $1.85-billion. Charitable donations rise by that same amount when the stock market increases.
(Hat-tip: Rob Moll)

No comments:

Post a Comment