Opinion: Tax rule change could pull rug from under charities
By Ruth Blank
For a region still struggling with some of the worst economic conditions on record – a region that, even before the economy tanked, lagged the rest of the nation in philanthropic giving – proposals by the Obama administration and the so-called supercommittee to decrease the deductibility of charitable gifts are a very bad idea. They could severely damage our communities and set a dangerous precedent.
A recently completed multi-county study of philanthropic giving and attitudes in the region, the Greater Sacramento Generosity Project, highlighted the challenges local nonprofits face.
The project found that in El Dorado, Placer, Sacramento and Yolo counties only 62 percent of households had made a charitable contribution the prior year (compared to the national average of 66 percent). Worse, the average amount reported given locally was about $700 less, 38 percent below the national average.
These results mirror findings of a study called “How Americans Give” conducted by the Chronicle of Philanthropy several years ago. Using aggregate data from itemized returns, this study found that on average Americans reported contributing 7.12 percent of their after-tax income to nonprofits. In this region (Amador, El Dorado, Placer, Sacramento and Yolo counties), it was 6.85 percent. And the average amount per household given locally to nonprofits was about $1,100 (32 percent) less per household: $2,431 vs. $3,563 nationally.
Ruth Blank is CEO of Sacramento Region Community Foundation, Sacramento; Steve Heath is president & CEO, United Way California Capital Region, Sacramento. This commentary was co-signed by Linda Philip, CEO, Community Foundation of San Joaquin, Stockton; Andy Prokop, president and CEO, United Way of San Joaquin County, Stockton; and Caitlyn Stephen, executive director, Yuba-Sutter United Way, Yuba City.
They want to take it away for a couple of reasons: 1)they believe the government should be the one who determines which charities are worthy of support and they want to control those purse strings. And 2) the law wouldn’t affect Democrats as much as Republicans. The statistics are quite clear on that.
Tax the churches.
Go with a flat tax, then there will be no need for deductions and tax loopholes.
Robot,
Taxing churches is not the answer. After Hurricane Katrina it was the churches across the country that came to the aid of the people of New Orleans and the Mississippi Gulf Coast. Many churches are still actively helping people in those areas. After the Angora Fire it was our local churches that were instrumental in helping the Angora Fire Victims. Many of our local churches are helping people struggling in our community. Churches can get aid to people quicker than our Federal, State and Local governments. Robot, I encourage you to get involved with one of our local churches and see the good they do for our local community and even the world.
Careaboutthecommunity, a flat tax is not the answer. People keep saying it would simplify the tax code, but it will not. Tax accountants are required to follow the complicated tax code to define taxable income. Without a complicated tax code, people like me get to decide what the taxpayer pays.
A little example. A business has great income predicted. We sell the right to the income to a third party and take a bond in exchange. Now I have a bond that is not cash income, but I do have an asset. Then the following year I sell the bond, well thats money in repayment of debt. Boom tax free.
Thank you, Keith!
I’m no longer responding to Robot’s taunts. Once you call him out he just disappears on that thread and goes on to bullying on another topic. Typical.
I should have been more specific. Tax the churches that engage in political activity.
And I am sorry I can’t find the time to go search back through all these articles to respond do all of your silliness. Sometimes I just decide that there is no hope.
Tax the evil weed !Talk about lost bucks,someone must be plugged in at the nation capital with cartels .
Robot cracks me up,same bozo from the wore out Tribune that has no comments do to a lazy editor.
Should left her in north shore where there’s no real action with millionaires.