I get it. We are a culture of immediate gratification and demand “results now”. However, that is not a long-term solution for most issues. It doesn’t work with diets. It doesn’t work with making money. So, it shouldn’t work for the Federal Budget either.
For too long, the Charitable Deduction Allowance has been target for removal or adjustment in order to reduce the deficit. Jay Carney said earlier this week, “The President’s proposal, as you know, includes the provision that would cap deductions for wealthier Americans at 28 percent—a very common-sense proposition,” I am typing this to inform people that this is not a common sense proposal! Click here for a link to the article.
Those wealthier Americans are those individuals who can and do make transformational philanthropic gifts to nonprofits. These individuals substantially fund the sector, which in turn, creates economic development opportunities throughout the Country. Furthermore, the nonprofit sector as a whole conducts services that the private sector won’t (because there isn’t money to be made at it) and the public sector can’t (or at least shouldn’t).
Limiting the deduction takes away any leverage these philanthropist have. With out them, the sector and the services provided, will die.
Ascent Advisors 