Suzanne Perry’s recent article, available on the Chronicle of Philanthropy‘s website, explores the projected decrease in giving to charitable organizations if the charitable deduction were to be limited for the wealthy as per President Obama’s recent recommendation. One study projects the potential reduction in giving at a range of $2.9 – $5.6 billion per year while another projects $1.7 – $3.2 billion per year. (The possible change in charitable deductions is significant enough that the Chronicle’s website now has a special section dedicated to it.)
So What?
The proposed change in the charitable deduction guidelines would have both immediate and long term implications for organizations that currently receive funds from the donor group projected to be less generous. While this would always present significant challenges, it is especially burdensome given the current state of depressed giving (for more on how the economic downturn has impacted how much Christians give to local congregations read my post on Barna’s latest data.)
- Do you think a reduction in the charitable deductions for the wealthiest Americans is likely? Why or why not?
- If the charitable deduction limits were changed as proposed, how significantly would this impact your church?
- What percentage of your annual/operating budget would you expect to lose?
- How significantly would this adversely impact capital campaigns and endowment giving?