Latest News On Philanthropy

State of the IRA Charitable Rollover Bill

Quoted from CASE Update: Congress did not act to extend the IRA Charitable Rollover prior to its expiration on Dec. 31, 2011. Many lawmakers hope to pass a retroactive extension of the IRA charitable rollover in 2012.

Prior to its expiration, taxpayers age 70 ½ or older could make tax-free charitable gifts of up to $100,000 per year directly from their Individual Retirement Accounts to eligible charities, including colleges, universities and independent schools. Last December, Congress passed a two-year, retroactive IRA charitable rollover extension through Dec. 31, 2011, as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.

Mixed Signals on Charitable Deduction in President Obama's FY13 Budget

From CASE Public Policy page:  President Barack Obama's 2013 budget plan sends mixed messages as to whether his administration plans to limit or preserve the value of the charitable deduction. As in his previous three budgets, President Obama's FY13 budget includes a charitable deduction cap. Currently, taxpayers earning more than $200,000 annually ($250,000 for married couples) can take itemized deductions, including the charitable deduction, at a rate equal to their tax bracket (33 percent or 35 percent). The president's proposal would cap the value of itemized deductions for these taxpayers at 28 percent.

However, the budget plan also references the president's strong support for the "Buffett Rule," named after billionaire Warren Buffett. If enacted, the Buffett Rule, which has been introduced by Sen. Sheldon Whitehouse (S 2059) , would ensure that taxpayers earning more than $1 million a year would pay no less than 30 percent of their income. All deductions for these taxpayers would be eliminated under the Buffett Rule, except for the charitable deduction.

While the charitable deduction cap and the Buffett Rule are unlikely to see legislative action in the short term, CASE will continue to urge the administration and Congress to preserve the value of the charitable deduction and explain to lawmakers why the charitable deduction is different from other deductions. Background information can be found on the CASE website.

Corporate Giving...

Here is a link to an article about corporate giving for the 2011 calendar year. The CASE survey found that philanthropic corporate dollars rose in 2010 but most companies forsee giving remaining flat for the coming year. One expert "expects it will take at least until 2013 for companies to give as much as they did before the recession took hold at the end of 2007." Read more at  http://philanthropy.com/article/Big-Businesses-Won-t/128327/

Interesting Research

Here is a link to the executive summary of The Cygnus Donor Survey…Where Philanthropy is Headed in 2011" by Penelope Burke, Cygnus Applied Research, Inc. from the Chronicle of Philanthropy via the Council on Resource Development:  http://www.cygresearch.com/special