DMANF-Lead Coalition Urges Obama Administration to Reconsider Proposal Limiting Value of Tax Deductions for Charitable Contributions

February 5, 2010 — The White House has again proposed reducing the charitable deduction for families earning $250,000 and above. The DMANF, along with a coalition of other nonprofit and charitable organizations, already defeated several efforts to include this provision as a way to fund Health Care Reform.

The DMANF-lead Coalition has sent a letter to President Obama, strongly urging the Administration to reconsider its proposal (or any similar proposals) in the FY 2011 Budget that would limit the value of itemized deductions for charitable contributions.

If you have any questions or wish to assist the Coalition's efforts, please contact DMANF Executive Director Chirstopher Quinn at CQuinn@the-dma.org.

The full text of the letter follows.

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February 5, 2010

The President

The White House

1600 Pennsylvania Avenue

Washington, D.C. 20500

Dear Mr. President:

As a coalition representing a broad cross-section of nonprofit organizations across the country, we strongly urge you to reconsider your Administration’s proposal (or any similar proposals) in your FY 2011 Budget that would limit the value of itemized deductions for charitable

contributions.

As we stated during the healthcare debate, this proposal would create a disincentive for taxpayers who give the most to charitable organizations to continue their generosity. Our nation cannot afford to discourage giving at a time when charitable organizations are facing enormous financial challenges stemming from the economic downturn.

The Giving USA Foundation recently reported that in 2008, the decline in total charitable giving was the greatest since the organization began tracking charitable donations in 1956. 2009 was just as devastating with some charities, after years of public service, closing their doors for good.

Studies indicate that donors give for many reasons—incentives such as tax deductions being among them. While Americans do not make charitable gifts only for tax reasons, tax incentives make more and bigger gifts possible.

History and the actions of the federal government indicate that tax incentives do, in fact, affect charitable giving. During times of crisis, such as the natural disasters like Hurricane Katrina and the 2008 Midwest flooding, Congress regularly passes charitable giving incentives to make it easier for Americans to give donations and support to the nonprofits serving individuals, families and communities in need. In fact, just two weeks ago, you signed into law HR 4462 which encourages charitable giving through tax deductions to help the nation respond to the devastation in Haiti.

As charities struggle to meet increased demands for their services and raise additional funds, we need to encourage all individuals, regardless of income and wealth, to be more charitable. Limiting the value of the charitable deduction does the exact opposite and would fundamentally alter the tradition of charitable giving that has made America one of the most generous nations in the world.

Again, we urge you to withdraw any proposal that would limit the value of itemized deductions in your FY 2011 Budget.

We appreciate your long-standing experience in and support of the charitable sector, and we look forward to working with you and your staff on this issue and on any other issues affecting nonprofits and charities.

Sincerely,

John H. Graham IV, CAE

President and CEO

American Society of Association Executives

Paulette V. Maehara, CFRE, CAE

President & CEO

Association of Fundraising Professionals

William C. Daroff

Vice President for Public Policy &

Director of the Jewish Federations of North America

Sr. Georgette Lehmuth, OSF

President and CEO

National Catholic Development Conference

John Lippincott

President

Council for Advancement and Support of Education

William C. McGinly, Ph.D., CAE

President, Chief Executive Officer

Association for Health Care Philanthropy

Anthony W. Conway

Executive Director

Alliance of Nonprofit Mailers

Christopher M. Quinn

Executive Director

DMA Nonprofit Federation

Ford W. Bell

President

American Association of Museums

Tanya Howe Johnson

President and CEO

Partnership for Philanthropic Planning

Kelly B. Browning

Executive Vice President and Chief Operation Officer

American Institute for Cancer Research

William P. Magee Jr., D.D.S., M.D.

Co-Founder and Chief Executive Officer

Operation Smile

Adam Meyerson

President

The Philanthropy Roundtable

John Ashmen

President/CEO

Association of Gospel Rescue Missions

Katherine Beh Neas

Vice President, Government Relations

Easter Seals

Mike Novak

President – CEO

Educational Media Foundation

Benjamin K. Homan

President

Food for the Hungry

Sue Sword

Executive Vice President

Christian Appalachian Project

Dan Busby

President

Evangelical Council for Financial Accountability

Rodger Schlickeisen

President and CEO

Defenders of Wildlife

Bryan Terpstra

President

Direct Marketing Fundraisers Association

Arthur H. Wilson

National Adjutant/CEO

Disabled American Veterans

Rev. L. Scott Donahue

President and CEO

Mercy Home for Boys & Girls

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