Charitable giving is a time-honored American tradition that strengthens communities and sets the standard for the rest of the world. From healing and educating to feeding the hungry and providing relief in times of crisis, the charitable sector is inextricably linked to our communities.
Philanthropy’s independent role as an investor in innovation and safety net services is more imperative than ever for restoring and sustaining a strong economy. However, Congress is seriously considering whether to retain, modify, or eliminate the charitable tax deduction, a 100-year-old tradition that encourages people to donate a portion of their income to support worthy causes.
Such a move would have a profound effect on giving that supports vital community services. It would hit those who need help the most. If donors have less incentive to give to charities, donations will decline, significantly impeding the important work that nonprofits do for the millions of people who rely on them.
“Unlike other tax incentives, the charitable deduction is a unique provision that encourages individuals to give away a portion of their income without getting anything back,” writes Gordon Haas, chair of the Community Relations Committee of the Jewish Federation of Greater MetroWest NJ.
As June approaches and budget season begins at both the federal and state level, the Greater MetroWest federation is working closely with the Jewish Federations of North America Washington office and the New Jersey State Association of Jewish Federations to oppose any changes to the charitable tax deduction and instead urge policy makers to help build the capacity of nonprofits.
— CRC “Advocacy in Action” Blog