Most U.S. charities believe they will be hurt by President Obama’s proposal to lower tax incentives designed to encourage charitable giving, a new survey says.
About 56 percent of nonprofits surveyed by the Association of Fundraising Professionals say their organizations would suffer if the deduction rate were lowered for donors making more than $250,000 a year.
More than one in 10 charities say they would be “hurt a lot” by Obama’s proposal, and two-thirds believe the plan is a bad policy move.
About 14 percent support the proposal.
“Donors who make more than $250,000 annually typically give thousands of dollars every year, and in some cases, hundreds of thousands of dollars,” says Paulette V. Maehara, president and CEO of the association. “Thus, the charitable deduction incentive plays an increasingly larger role in these giving decisions.”
Maehara says enacting the change soon would further harm organizations already battered by the economic downturn.