March 26, 2009 | Read Time: 1 minute
Mike Burns, a nonprofit consultant, notes that leading Democrats are asking questions about how taxes affect the charitable giving of two very different types of donors.
On his blog, Nonprofit Board Crisis, he writes that President Obama this week defended his proposal to limit tax breaks for charitable deductions for wealthy people. The president said the change would have little effect on giving, in part because tax benefits do not motivate philanthropy.
Mr. Burns points out that several Democratic senators have taken a slightly different approach with foundations. They have introduced legislation that they argue would lower a tax that dissuades grant makers from giving more.
“How ironic is it that foundations, institutions whose first, middle, and last names are about charitable giving, should need an incentive to give more,” he writes. “Something’s wrong with this system.”
To be sure, the Obama administration has proposed reducing a tax incentive to giving by wealthy individuals, while the senators want to reduce an excise tax they say penalizes foundations that give more.
But do you see some inconsistency in the approaches? Click on the comment button below to share your views.
