OCF is closely monitoring the continuing discussions about the federal sequestration and possible federal limitations on charitable deductions. Both of these decisions could have significant impacts on the philanthropic and nonprofit sectors.
Sequestration, which would entail across the board spending cuts, would mean cuts to public services and specifically to nonprofit organizations that depend on federal and state funds to implement community benefit programs.
Some proposals for reducing the deficit include reductions to the charitable deduction, weakening the charitable giving incentive or placing general restrictions on itemized deductions for taxpayers. Oregon nonprofits reported almost $1.5 billion in charitable contributions in 2010, with the largest portion of those contributions — 34 percent — coming from individuals.
To learn more about the issue:
OregonLive: Oregon Charities Give Good Reasons for Dodging Fiscal Cliff
New York Times: In Fine Print of Fiscal Debate, Charities Unite to Defend Deductions
Infographic on the Danger of Capping Deductions