It’s the time of year for giving, and every nonprofit knows it. If your mailbox is anything like mine, it’s stuffed this month with requests for tax-deductible donations to countless worthy causes. Any donation I’ve made in response to remembrance requests at a funeral, any contribution I’ve made to a music or cultural nonprofit, any college my children have attended have placed me on their mailing lists for their year-end “asks.”
The requests come against the worrisome backdrop that the mind-numbing fiscal cliff could wind up putting a crimp on next year’s charitable giving. Leaders in nonprofit and philanthropic organizations worry about proposals being floated in Congress and the White House to set a cap on itemized tax deductions or to place a limit on tax benefits to large donors for charitable gifts. The price of averting the serious consequences of a national governmental financial meltdown, in other words, could end up being paid in part by charitable organizations “that enrich our communities and help those most in need,” in the words of Steven Moore, executive director of the Vancouver-based Murdock Charitable Trust.
Those institutions include churches and synagogues; museums and historic sites; emergency responders including American Red Cross and the Salvation Army; sciences and education research organizations; orchestras and arts organizations. Whether the charity is Share or the Fort Vancouver National Trust, Clark County is made whole by their presence.
The consequences to nonprofits of limiting tax deductions are unknown and unknowable as long as proposals lack specificity. Nonprofit advocacy groups, who are predicting a potential drop in charitable donations of $7 billion annually, are preparing for battle with websites stuffed with talking points to make their case to policy-makers.