Volunteers of America is dedicated to helping those in need live healthy, safe, and productive lives. Since 1896, our ministry of service has supported and empowered America’s most vulnerable groups, including veterans, seniors, people with disabilities, at-risk individuals, the homeless, and those recovering from addictions.
Volunteers of America is active in many coalitions, working closely with other nonprofit and human services organizations on issues of common interest. Our collaboration with these coalitions, businesses and local, state and federal government officials provide us the opportunity to successfully advocate on behalf of the most vulnerable among us.
Join us in Helping to Preserve the Charitable Deduction
The proposed cap on the value of the charitable deduction for certain taxpayers is projected to cost America’s charities and the people they serve as much as $7 billion a year. Since 2008, charitable giving has declined by $25 billion as Americans struggle to navigate a difficult economy. Federal and state budget cuts have further overburdened and diminished the capacity of nonprofits and disproportionately affected those least able to help themselves.
Unlike other deductions, which subsidize personal spending that benefits the individual taxpayer, the charitable deduction actually encourages taxpayers to forego income in order to benefit our communities. Not only is the charitable deduction fair, it is an efficient way for the government to spur investment in communities. When an individual in the highest tax bracket donates $1,000 to charity, the government foregoes $350 in tax revenue, but communities benefit from the entire $1,000 gift. The government is unlikely to find another vehicle that can leverage private spending for community services on a nearly 3-to-1 ratio.
Volunteers of America and other leading nonprofit organizations working to improve lives across the nation believe that a combination of spending cuts and changes to entitlement programs, along with the elimination of the charitable deduction, would have a severe, negative impact on low-income families and individuals.
We urge Congress to reject proposals to limit the value of itemized deductions for charitable donations. As nonprofit organizations struggle to meet increased demand for services and raise the necessary funds to meet those needs, Congress should seek to encourage all individuals, regardless of income and wealth, to give more to charitable organizations.
Now is not the time for Congress to dismantle a tradition that supports America’s nonprofits and the people and causes they serve. While our nation faces a fiscal crisis that must be addressed, Congress should stop seeing the charitable deduction as an easy mark and acknowledge the fiscal cliff they will create for America’s most vulnerable at a time they can least afford it. Giving strengthens our communities. Join us and urge your members of Congress to preserve the charitable deduction.