The National Association of Charitable Gift Planners (“CGP”) commends Congressional leaders on recent efforts to craft tax reform legislation that strives to make the tax code simpler, fairer, and more conducive to sustained economic growth. As the momentum for this legislation continues to grow, CGP is working to ensure that any changes made to the tax code preserve and enhance charitable giving in America for many years to come.
Accordingly, as outlined below, CGP has taken formal positions on three matters related to tax reform and charitable giving. They are the charitable tax deduction, the IRA Charitable Rollover, and the Johnson Amendment.
CHARITABLE TAX DEDUCTION
Tax incentives for charitable giving, such as the income tax charitable contribution deduction, have been sending an essential message for 100 years about the core value our society places on voluntary giving and the important role of charitable organizations in meeting critical individual and community needs. Though studies indicate that donors give for many reasons, incentives such as tax deductions are among them. While Americans do not make charitable gifts solely for tax reasons, tax incentives make additional and larger gifts possible and more prevalent.
CGP opposes any proposal that would limit the full value and scope of the current-law charitable deduction. CGP encourages Congress to enact a universal charitable deduction that is available to all taxpayers. Read More
IRA CHARITABLE ROLLOVER
CGP has long advocated in favor of public policy that encourages charitable giving, a position which is based upon the critical role of philanthropy in this country, as outlined above. In this spirit, CGP supports federal legislation that permits Americans to transfer money from their Individual Retirement Accounts (“IRAs”) directly to nonprofit organizations for charitable purposes, without suffering tax penalties. This legislation is commonly referred to as the IRA Charitable Rollover.
CGP urges Congress to retain this important provision in any rewrite of the tax code that takes place this year. CGP supports legislation which would expand the IRA Charitable Rollover to authorize tax-free IRA rollovers for life-income gifts to benefit both charities and provide taxable retirement income for donors. Read More
CGP opposes efforts that would politicize the charitable nonprofit and philanthropic community by repealing or weakening current federal tax law protections, known as the Johnson Amendment, that prohibit 501(c)(3) organizations from endorsing, opposing, or contributing to political candidates. Read More