I am passing along this article, which was brought to my attention by another fundraising consultant in our firm. The story, written by Elizabeth Blair, appeared February 17, 2011 on the NPR iPhone Application. Charitable Deduction Limit: Bad For Art Nonprofits?
As professional fundraising consultants it is important for us to stay ahead of the curve so we can assist our clients in helping to assess the fundraising environment. Our firm’s involvement as a member of the Giving Institute helps provide additional value to our clients. We feel that it is important for nonprofit leaders to realize the significance of this legislation, so they can meet and voice their opinions with their local representatives of Congress. . In an effort to reduce the deficit, President Obama hopes to limit the charitable deduction for the top income bracket. That is, wealthy donors who itemize would not be able to deduct as much from their income to owe less in taxes. Charities — which are already hurting from the economic downturn — are worried this will discourage potential donors.