Lancfound Blog

Advocating to keep Charitable Deduction alive

This week, leaders from foundations across the county have joined forces in Washington DC in Senate testimonies that advocate to maintain charitable deductions that are threatened by a proposal in Section 170 of the IRC (the charitable deduction).

The proposed change claims that charitable deduction is a loophole or benefit for the for the most wealthy. Nonprofit industry experts contend that charitable deduction encourages behavior that benefits many needs, causes and enrichment our community.

Imagine the fate of many of our community members if donors chose to reduce their gifts:

According to Kevin Murphy, our neighbor and CEO of the Berks County Community Foundation who testified before the Senate hearing, “Charitable giving is discretionary.”  Further, he claims “Philanthropy eases the burdens of government, and reduces taxpayers’ costs, by meeting needs that otherwise would have to be met by government, and by pioneering more cost effective and efficient ways to meet those needs. Charitable giving in this country often forms our final safety net, and we cannot afford to put at risk the people who rely on it.” 

See more of Kevin Murphy’s testimony here, follow the issue at the Council on Foundations or check back for updates on the outcomes of this critical issue.