The Norman Transcript

Nation/World

January 17, 2013

Charities worry new tax law will reduce donations

WASHINGTON — Charities and nonprofit organizations are worried that new limits on tax deductions for high earners will hurt donations just as charitable giving is starting to rebound from the depths of the recession.

Experts doubt the new limits on deductions will have much impact on giving, but some major nonprofit organizations fear they’re a sign that the charitable deduction is no longer sacrosanct on Capitol Hill, just as Congress is promising a broader effort later this year to overhaul the tax code.

The limits on deductions are part of the new tax law Congress passed on New Year’s Day. They reduce the value of all itemized deductions for individuals making more than $250,000 and married couples making more than $300,000. Advocates are concerned the limits will reduce the tax incentive for people to make donations to charities and nonprofits such as religious institutions, colleges and groups that help the poor.

“The charitable deduction incentive is different than any other deduction or credit in the tax code,” said Sandra Swirski, executive director of the Alliance for Charitable Reform, which lobbies on behalf of donors and private foundations. That’s because the deduction encourages people to give away income, while other deductions and credits encourage people to buy things they can then write off, she noted.

Charitable giving in the U.S. increased in 2010 and 2011, according to the latest data. But it has yet to fully return to pre-recession levels, according to data from the Giving USA Foundation and the Indiana University School of Philanthropy.

Charitable giving by individuals, foundations and corporations topped $298 billion in 2011. In 2007, it was $337 billion, in inflation-adjusted dollars.

For local news and more, subscribe to The Norman Transcript Smart Edition, or our print edition.

1
Text Only | Photo Reprints
Nation/World
  • Documents detail another delayed GM recall for failed power steering

    DETROIT — General Motors waited years to recall nearly 335,000 Saturn Ions for power steering failures despite getting thousands of consumer complaints and more than 30,000 warranty repair claims, according to government documents released ...

    April 20, 2014

  • Landslide devouring part of Wyoming town

    JACKSON, Wyo. — A slow-motion disaster continued unfolding in the Wyoming resort town of Jackson on Saturday, as a creeping landslide that split a hillside home threatened to swallow up more houses and businesses. The ground beneath the ...

    April 20, 2014

  • Questions about missing Malaysian plane answered

    Travelers at Asian airports have asked questions about the March 8 disappearance of Malaysia Airlines Flight 370 while en route from Kuala Lumpur to Beijing. Here are some of them, followed by answers. Samuel Rogers is a 20-year-old ...

    April 20, 2014

  • NASA’s space station Robonaut finally getting legs

    CAPE CANAVERAL, Fla. — Robonaut, the first out-of-this-world humanoid, is finally getting its space legs....

    April 20, 2014

  • Hostage French journalists in Syria freed

    PARIS — Four French journalists held hostage in Syria for 10 months have been released, officials said Saturday, the latest batch of reporters to be freed in what has become the world’s deadliest conflict for the media....

    April 20, 2014

  • 13th body found in Everest avalanche

    KATMANDU, Nepal — Search teams recovered a 13th body Saturday from the snow and ice covering a dangerous climbing pass on Mount Everest, where an avalanche a day earlier swept over a group of Sherpa guides Another three guides remained ...

    April 20, 2014

  • Autopsy to ID dead boy; body cast off side of road

    WORCESTER, Mass. — All Massachusetts authorities could say for sure is that they found the lifeless body of a small boy, apparently cast off the side of a highway....

    April 20, 2014

  • Study: Half of jailed youths have injury

    NEW YORK — About half of all 16- to 18-year-olds coming into New York City’s jails say they had a traumatic brain injury before being incarcerated, most caused by assaults, according to a new study that’s the latest in a growing body of ...

    April 19, 2014

  • Senate to debate rideshare regulations

    PHOENIX — Among the major issues left to cover at the Arizona Legislature before the session ends is how to regulate the increasingly popular ridesharing programs like Uber and Lyft. The contentious debate has pitted traditional taxi ...

    April 19, 2014

  • Quake shakes Mexican capital

    ACAPULCO, Mexico — A powerful magnitude-7.2 earthquake shook central and southern Mexico on Friday, sending panicked people into the streets. Some walls cracked and fell, but there were no reports of major damage or casualties....

    April 19, 2014