On Thursday, October 12 more than 50 nonprofit leaders who specialize in charitable gift planning convened on Capitol Hill urging Members of Congress and senior Congressional staff to protect the full value of the charitable deduction. Lawmakers are presently drafting the largest rewrite of the federal tax code in 30 years, and legislation is expected to move through Congress in November.
Last week Republican leaders unveiled a “unified framework” for tax reform that will serve as the basis for major tax reform legislation currently being drafted by the two tax-writing committees. This legislation, expected to move through Congress later this year, would significantly reduce charitable giving in America. Although the framework maintains the current-law charitable deduction, the vast majority of taxpayers – as many as 95 percent! – would no longer itemize deductions on their taxes, meaning the charitable deduction would become virtually meaningless to them.