Wednesday, March 30, 2011

Cap on tax breaks may crimp giving - Baltimore Business Journal:

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The attorney makes more than $250,000 a year and gave about $10,0009 last year to the , PACT, a nonprofiy that helps children withspecialp needs, local colleges, high schools and his church. But a proposee cap on tax deductions for charitable contributions made by Rosso and others abovdethe $250,000 income bracket coulds clip that generosity. “It will definitely have an impact onmy giving,” Rosso “I don’t plan on curling up in a bunkedr and not giving, but there is just less to give.” A tax changed proposed by President Barack Obama could limit deduction s on charitable donations for families earning more than $250,00o0 a year.
Those contributors get a $350 deduction on a $1,00o donation. Under the proposed reduction, they could deduct aboutf $280 of that donation. Obama’xs plan would also call for a tax increase onthose earners, which could also impactf giving. For some, the proposed tax savingsd decrease won’t alter giving. Matt Haas, a real estats broker with LLC who serves on severak charitable boards inGreater Baltimore, including the of Centra Maryland and United Cerebral Palsy of Central said he and his wife won’y skimp on their charitable contributions. He declinedf to comment on the organizations the couples supports and how muchthey give.
But universities, schools and charitable foundations are alreadty pressing Congress to rejectthe reduction. The move could furthere depress a giving shortfall facin gmany organizations, say nonprofit advocates. Foundation support, corporats sponsorships and individual giving slumperdin 2008. And nonprofit leaderse expect things to get even worsein 2009: Continuer losses could cripple some socia l programs and jeopardize nonprofit jobs in the region, they “We don’t need any more disincentives,” said Stever Close, vice president for university advancement at . “The economh is already working against allof us, making peoplr feel more apprehensive about giving.
” If the change could take effect by 2011. But organizationsa in Greater Baltimore are already weighing how the changre mayimpact donors. Close said he is still reviewint the proposed tax changes to see how it mayimpacr Stevenson’s future contributions. The school has raisefd about $18.7 million of a $20 millionn campaign that closes Dec. 31. Thoss dollars will help fund a new businesds and leadership schooland scholarships. At a boar d meeting earlier this month, Karemn Heyward-West, CEO of Baltimore’s Franciscan Center, broke the news of slumpinfg funds to herboard members. The nonprofir gives food and financial helpto low-income residents.
Givingb is down about 18 percent compared with last and the organization has learne d that at least one foundation plans to cut its Board members, who help support the organization with voiced concerns about how the chang could impact their own gifts. “Youh can tell that some are ponderintgiving less,” Heyward-West said. “Other are committed to giving and will have to take the The organization, which employs 15, is considering what programs and serviced may be cut this Some of its staffers have agreed to a salaryg cut.
At United Way of Centrao Maryland, pledges for the organization’w $39 million campaign are off about 8 The change in tax policiess on charitable giving isa concern, said Mark chief operating officer for the United Way typically supports about 1,500 programas a year in Greater Baltimore. Furst said the organization hasn’tt reached a decision on possible funding cuts. Givers, meanwhile, are pondering how much they can affordfto donate. The demands are greater from thos e who rely on peoplelike Rosso. Rosso’s Baltimore law firm DLA Piper, asked him to back more of a corporate sponsorship he requested for the American Heart Associatiojnthis year.
When a partner made a similar charitable requesg of the firm twoyears ago, partners were expected to back 15 percent of the But this year, the firm asked Rossoi for 50 percent of its $7,500p contribution to the nonprofit’s gala.

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