ACF

ACF Takes Action on Proposed Charitable Deduction Cap

The Arizona Community Foundation and its affiliate, the Yavapai County Community Foundation, have been supporting Prescott Creeks for well over a decade now with small grants for orgranizational capacity development and project-related outreach materials. Not only do they do good work by supporting non-profit organizations throughout the state, they are also advocating on behalf of donors.

The following information provided as a service to our readers and is copied directly from an email yesterday from Steven Seleznow, President and CEO of the Arizona Community Foundation.

ACF Takes Action on Proposed Charitable Deduction Cap

As your philanthropic partner, we feel it is our obligation to inform you of important issues that may affect your charitable giving, and our efforts to support your interests as donors and funders of the most critical needs in Arizona and elsewhere.

The Arizona Community Foundation is concerned that the proposed cap on charitable tax deductions included in President Obama’s American Jobs Act and deficit reduction proposal could adversely affect your charitable giving. As you may know, the Administration has proposed disallowing any charitable deduction to the extent such a deduction reduces the income tax liability of the donor by more than 28 percent of the donation.

And while we understand the need for all citizens to make sacrifices to reduce the federal deficit, we feel that our donors’ efforts to support non-profits will be especially compromised by the cap when seen in combination with the current and anticipated cuts to community support services in federal, state and local budgets.

We believe capping the charitable deduction at 28 percent, as proposed, could limit a significant incentive for donors to give, potentially reducing the amount of money available to support worthy nonprofits across the country.

The Arizona Community Foundation has formally communicated with our elected representatives in Washington, D.C., about the detrimental impact we believe the proposed cap on charitable tax deductions could have on the nonprofit sector. Click here to read on our Web site the letter ACF sent to Arizona’s Senators and Congressional Representatives. Follow-up calls and meetings are taking place now, and ACF’s Public Policy Committee is actively monitoring this issue.

The newly formed Super Committee, of which Arizona Senator Jon Kyl is a member, has been tasked with reducing the federal deficit, and the President has recommended that the Committee cap itemized deductions, including charitable deductions. While lawmakers may challenge many of the proposals, we feel it is important that the Arizona Community Foundation and our donors remain informed on the issue and share our perspective with lawmakers.

Please contact Jim Pitofsky at (602) 682-2012 or [email protected] if you would like more information. And of course, remember that you are free to exercise your right to share your opinions, whatever they may be on this issue, with your elected representatives in Washington.

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