Some Washington area nonprofits and foundations expressed concerns that potential reductions in the charitable tax deduction, under consideration by Congress’s deficit-reduction supercommittee last week, would have a chilling effect on contributions.
So far proposals offered by both Democrats and Republicans have included caps on deductions for charitable giving as a way to cut $1.2 trillion in federal spending over the next decade. President Obama’s proposal would limit tax write-offs for the wealthy to a 28 percent cap from 35 percent.
“For Feeding America, like a lot of charities, our work is dependent on gifts from individuals and the private sector,” said Maura Daly, spokeswoman for Feeding America, a hunger-relief charity connected to 61,000 volunteer-run agencies. “The need is up, unemployment is still high, food coming from federal sources is down and the entire nonprofit sector is experiencing decline, so any provision that would change incentives to donate would have a really negative impact on our work.”