February 27, 2009 | Read Time: 2 minutes
President Obama’s proposal to limit charitable tax deductions for wealthy people is roiling the nonprofit world.
To no surprise, right-leaning blogs are attacking the plan with vitriol. One writer calls it a “war on charity,” and another says the administration is trying to hurt churches and conservative think tanks.
Political charges aside, Charity Navigator, a nonprofit watchdog, is asking how many donors are motivated to make gifts in part because of the tax benefits.
“The data that we have seen over the years has shown a big spike in donations through our site during the last several days of the year, especially on December 31 which of course is the last day to make a qualified tax deductible charitable contribution,” it says on its blog. “This data indicates to us that the tax benefits really do motivate people to donate.”
But John D. Colombo, a law professor at the University of Illinois College of Law, writes that he doesn’t think the Obama plan would hurt giving.
“The actual effect of the change probably isn’t going to be much,” he writes on the Nonprofit Prof Law Blog. “So let’s not turn this into a doomsday scenario, folks. The truth is, if Obama can fix our health-care system, charities as a whole (and everyone else, from GM to the local barbershop) are going to be much better off in the long run.”
To be sure, the Obama proposal may never become reality. As Glenn Thrush, a Politico reporter wrote on the newspaper’s Web site, even Rep. Steny Hoyer, a Democrat from Maryland and the House Majority Leader, “sounded dubious about its prospects.”
Read The Chronicle’s article about concerns being raised about the proposed tax change.
What do you think of the proposal? Discuss how this plan would affect fund raising on The Chronicle’s Forums page or click on the comment button below.
