Obama's Proposed Charitable Deductions Cap Is "Serious Threat"

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A church-state expert calls this charitable deduction cap "a threat aimed like a dagger at the heart of America's non-profits, secular and religious."

An article in the Baptist Press warned of the “serious threat” to churches and non-profits if the federal government adopts Obama’s proposed charitable deductions limit for tax benefit purposes.

Richard Land, president of the Ethics & Religious Liberty Commission (ERLC). called the idea of capping the charitable deduction “as serious a threat to religious organizations as anything the federal government has done in recent decades.”  

“This would be catastrophic in its impact, particularly on those large gifts that many religious organizations, colleges, universities and ministries, as well as churches, depend upon for continuing operations,” Land told the Baptist Press. “Everything we know from past experience tells us if they cap deductions it will seriously erode charitable giving.”

The proposal could reduce charitable donations by as much as $7 billion a year, according to an estimate cited by Independent Sector, which leads a network of about 600 nonprofit and philanthropic organizations.

The federal tax system needs an overhaul, but the suggestion to limit charitable deductions further “is a threat aimed like a dagger at the heart of America’s charitable nonprofit entities, secular and religious,” Land said. “It will weaken most, kill many, and harm all.”

Note from ChurchLeaders.com: We urge pastors and church leaders to advise and encourage their congregation members to contact their congressman about this issue. This proposed cap on charitable deductions has the potential to dramatically impact the ministry of churches. Continue reading the article at the Baptist Press for ideas on how to effectively portray the impact of this issue to our government representatives.

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  • baldsteve31

    While I certainly do not agree with this legislation, I do have one comment. If people are only giving because they get a break on their taxes, there’s a larger issue. Just sayin.

    • Dr Shirley Lynn

      That is not the only reason but with economy the way it is and they desire to give and we are supporting millions of free food and housing and cell phone and lord what else and you think it is okay to take that away from working people that gets nothing free.
      Get a life and this kind of thinking is stupid!!

      • Drummie

        Why do you think the government should provide free cell phones? The government has made more people dependent on it than ever. Who is going to pay for it? Capping charitable donations is another way of spreading the wealth around supposedly. It sounds more like part of a grand socialist plan to make government the sole provider for people. We do not need Robin Hood robbing from the rich to give to the poor in the White Hous. Read the Constitution and see what the Governments proper role is. Providing free cell phones, free abortions, and free contraceptives certaily isn’t what the government is supposed to be doing.

    • Ron Kerns

      I’ve always thought that. I give cash anonymously when giving in church usually. And, I keep my own record of it. People tell me that if I get audited, they would disqualify those donations…and my response is “what’s wrong with that?”…..
      Am I the only one who thinks perhaps some churches use records of who gave what a bit too much…instead of just keeping tabs for “tax purposes”? That’s why I give generously….and anonymously.

    • Tod Thompson

      An income tax is essentially state sponsored theft. I’ll do anything legally possible to avoid giving them more of my money. Do you realize how much money the government wastes? Why wouldn’t I look for ways to give more to good charitable organizations? And despite what you say if I give less to our government to by planes and tanks for the Muslim Brotherhood I can give more to an organization like Samaritan’s Purse to help people who really need it and to hear the gospel message.

  • Drummie

    Obama doesn’t care about non-profits or donations, he wants everyone dependent on his big socialist government for everything. He doesn’t have any idea of what this would do and probably just plain doesn’t care. He wants to be in charge period. It is quite obvious that there is a war on Christianity by his administration and now he is going after everyone. He is an equal opportunity destroyer of what America has stood for and is attacking the very freedoms that paved the way for him.

  • http://twitter.com/PastorPHarris Pastor Paige Harris

    I really dislike it when the wrong “news” is reported. There is NO such proposal! NONE!

    • pjsr

      The Baptist Press article states there have been ‘proposals in both parties’, and also
      “In his budgets, Obama has proposed capping the itemized deduction at 28 percent for couples whose incomes are at least $250,000 and individuals who make at least $200,000 a year. High-income earners now can deduct at least 33 percent in charitable gifts.”
      That seems very specific.

    • Drummie

      The Washington Post has specifics on the proposals.

  • wayne

    Be like Romney…don’t take a tax deduction. God loves a cheerful giver.
    The non-profits will thrive anyhow.
    Oh ye of little faith.

  • bornagain

    If someone has a relationship with Christ, they will continue to give tithes and offerings faithfully whether or not they get anything in return. A law shouldn’t affect your givings if you’re giving for the right reason. :-)

    • Drummie

      This affects much more than tithes and offerings. What about the local soup kitchen that is not your Church? What about the local homeless shelter that is not a part of your Church. This affects far more than religious organizations.

      • bornagain

        Yes, I agree, I was responding to the first part of the article where it states that it poses a serious threat to churches and non-profits. As it will affect other organizations, it shouldn’t change people who are giving out of a relationship with Christ.

    • Tod Thompson

      I agree with that part of your assessment, but why should we feed the beast (big government) at the expense of organizations that actually do something to help people? All the big government programs ever do is enslave people and make them dependent on the state. It may get votes for a certain political party (which I suspect is the end game here), but the help they provide is an illusion. Meanwhile we will be crippling organizations that actually transform lives.

  • lmunro

    Yes, people will still give. Here is the problem….will it stop there with this proposal? Will the government then begin to ask the churches to pay taxes? Thats not out of the question….if this proposal passes, give the government and few years….we(tithers) will begin to then pay double taxes.

  • http://ourjourneychurch.com Bob Griffith

    I am concerned about this.

  • Drummie

    I had to come back to this after some serious thought. What is really going on in Washington? We saw how the Democrats had to resort to FRAUD to put God back into their platform. Why? See Romans 1:20-32 . Ever since the creation of the world, his invisible attributes of eternal power and divinity have been able to be understood and perceived in what he has made. As a result, they have no excuse; 21 for although they knew God they did not accord him glory as God or give him thanks. Instead, they became vain in their reasoning, and their senseless minds were darkened. 22 While claiming to be wise, they became fools.

    Does this sound like our current administration and politics in general?

  • Charles

    If they lower the tax brackets we won’t need the deductions. Tax deductions are a gimmick politicians use to pay off the electorate. If you are in a 25% tax bracket your tax bill would go down by $25 for every $100 you give. So to say people give for the tax benefit isn’t logical. People give because they care.

  • Ted

    Come on Obama eliminate the tax free deductions altogether..then we will see who the real Christians are, the ones giving from their hearts and not for the tax deduction…it would able “christian” churches to speak out on political issues, of grave concern for the country such as abortion, homosexuality, wars etc…presently the churches are afraid to speak out for fear of losing their exemption…time to get involved all you fat cat preachers, who have built empires with the tax free deductions…

  • tony g

    People that give with a right purpose will continue to give because of seed time and hatvest. If I give to the church im believing what the word says about my sowing not what the government does.

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