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AHP continues to promote charitable deduction

  • 1.  AHP continues to promote charitable deduction

    Posted 01-21-2015 11:39 AM
    In a letter sent today to new members of the House and Senate, AHP through the Charitable Giving Coalition strongly urged Congress to preserve the full scope and value of the charitable deduction highlighting that this unique, powerful incentive encourages contributions that allow charitable organizations to serve individuals, families and communities throughout the country. Proposals that would impose a cap or a floor on the deduction, or any other limitations, would impede the effectiveness of this vital incentive to give back to communities.

    The charitable deduction is unique among itemized deductions in that it encourages individuals to give away a portion of their income to those in need. It promotes a selfless act, and it encourages taxpayers to donate more funds to charities than they would otherwise give.

    A calculation of the deduction suggests that those in need receive $2.50 of benefit for every $1 of tax benefit going to the donor. In 2013, Americans gave over $335 billion to support charitable causes according to Giving USA, much of which is claimed as a charitable tax deduction.

    Furthermore, nonprofit organizations that rely on charitable gifts to provide valuable services to communities have a powerful impact on the American economy. These organizations generate $1.1 trillion every year in the form of jobs and services. One in 10 U.S. workers is employed by the nonprofit sector, which provides 13.7 million jobs. Employees of nonprofit organizations received roughly nine percent of wages paid in the U.S., and the nonprofit sector paid $587.7 billion in wages and benefits. 

    Limiting the value of the charitable deduction would inhibit the ability of charities to serve Americans and communities across the country. 
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    Kathy Renzetti CAE
    CSO
    Association for Healthcare Philanthropy
    Falls Church VA
    (703) 538-3143
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