In Fine Print of Fiscal Debate, Charities Unite to Defend Deductions

Source: The New York Times Date: December 5, 2012 By ANNIE LOWREY WASHINGTON — Proposals to cap or otherwise limit deductions in order to raise tax revenue from the wealthy are gaining bipartisan support in Washington — and making charities and nonprofits very worried. Concerned that special tax benefits to encourage Americans to give to charity might be significantly curtailed in the negotiations between President Obama and Speaker John A. Boehner, scores of nonprofit leaders came to Washington this week for a coordinated lobbying effort. “Normally, every nonprofit is focused on its own particular mission, whether saving the environment, or helping children, or imbuing a greater appreciation for art,” said Diana Aviv, the chief executive of Independent Sector, an umbrella group for nonprofits that helped organize this week’s effort. “For the first time, I’ve seen the sector coming together. We’re like Rip Van Winkle waking up and saying, This is not O.K.!” At stake is the $300 billion that Americans donate to nonprofits every year — and the $50 billion a year that tax deductions for charitable giving costs the government. Both Republicans and Democrats say they want to maintain tax laws that encourage Americans to give money to nonprofit groups. But with the White House looking to raise an additional $1.6 trillion in revenue over 10 years, and Republicans looking to raise $800 billion, there is growing bipartisan support for peeling back some of the special breaks for high-income households. That prospect has spurred Ms. Aviv and other nonprofit leaders [...]