Navigation Links
Association for Healthcare Philanthropy Opposes Limits on Charitable Tax Deductions
Date:3/4/2009

WASHINGTON, March 4 /PRNewswire-USNewswire/ -- The Association for Healthcare Philanthropy (AHP) today issued the following statement regarding limits on tax deductions for charitable donations proposed in the Obama Administration's budget:

The Association for Healthcare Philanthropy (AHP) opposes the proposal in the President's budget that would impose new limits on charitable tax deductions.

AHP applauds the President's overall efforts in the budget to revive the economy, reform health care, revise energy policy and tackle other important issues affecting the country.

However, the budget also contains a proposal that sends the wrong message at the wrong time to those who support charitable causes. It puts forward a scheme that would effectively devalue charitable gifts made by the very people who are in a position to make substantial donations at a time when they are sorely needed. For those who earn more than $250,000, the proposal would limit the federal tax deduction they may take for their generosity to 28 percent. Currently, they may claim up to a 35 percent deduction.

In these challenging economic times, charities and nonprofits already are finding it difficult to fulfill their altruistic missions because of reduced donations and resources. Yet, in times of economic trouble, it is charities and nonprofits that do much to augment the work of the federal, state and local government in meeting the needs of the American public through their vital programs and services. In fact, charities currently are being asked to provide even greater levels of assistance. The federal government, therefore, should seek ways to bolster charitable giving--as opposed to requiring charities to do more with less.

In fact, research published by the Congressional Budget Office from 1997, the Urban Institute from 2001, the Association for Healthcare Philanthropy from 2008 and the Center on Philanthropy at Indiana University from 2009 all state that giving is sensitive to price incentives provided by after-tax costs. The question that remains is: by how much?

A report by Indiana University "suggests that had these proposals been in place in 2006, total itemized charitable giving by households would have dropped by 2.1 percent." And that number fails to take into account the current large decline in America's personal wealth. Americans' generosity in support of nonprofit hospitals and health care systems is substantial, totaling $8.35 billion last year according to AHP's Report on Giving 2007. This report reveals an important insight concerning the importance of public backing for the nonprofit health care community: Almost 83 percent of all donors last year were individuals. Individuals provided 61 percent of all donations. Can American hospitals afford to lose 2.1 percent or more in contributions from these families?

Probably not. And, unfortunately, the growth rate of giving to the health care sector is slowing down and the number of donors is flat. According to a 2007 Chronicle of Philanthropy article, "Contributions to health-care institutions rose last year (2006) by 8.3 percent, adjusted for inflation, compared with a 12.9-percent rise from 2004 to 2005." The same conclusion was drawn from an AHP-sponsored study released in September 2008, by John Volpe, Ph.D., collegiate professor at the University of Maryland University College. In Economic Cycles and Charitable Giving Volpe concludes that a slowing of the growth in Gross Domestic Product and disposable personal income, as well as uncertainty over the economy are likely to contribute to weakness in charitable giving through 2009.

Yet such charitable giving is and will remain vital to the hospitals and systems to which it flows. According to the American Hospital Association (AHA) November 2008 Report on the Economic Crisis, the capital crunch is making it difficult and expensive for hospitals to finance facility and technology needs. The AHP Report on Giving indicates that more than 45 percent of charitable giving was put to use to upgrade infrastructure, including often long-overdue construction and renovation projects and equipment purchases. An additional 25 percent supported important functions such as community benefit programs, charitable care, research and teaching, and hospice, long-term and nursing care. About 14 percent went to general operations.

These accomplishments were achieved through fundraising and its outreach efforts to grateful families. While the Nation's health care needs are increasing, we must avoid creating obstacles that will diminish and discourage philanthropy.

The steep decline in personal wealth, especially if coupled with proposed limitations on tax deductions, make the outlook for philanthropy over the next 18-24 months bleak. For philanthropy to continue to fulfill its role in the American health care system, this is not the time to drastically change standards for fundraising.

Given the potential devastating impacts of this budget provision on charitable giving, AHP strongly opposes any provision that would impose new limits on charitable deductions. AHP is joined in this opinion by the Association for Fundraising Professionals (AFP).

AHP, established in 1967, is a not-for-profit organization whose 5,000 members manage philanthropic programs in 2,200 of the nation's 3,400 not-for-profit health care providers.


'/>"/>
SOURCE Association for Healthcare Philanthropy
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Photos: The American Diabetes Association, Fitness Expert Kathy Smith and Beachbody(R) Join Forces to Combat Type 2 Diabetes
2. Specialists On Call Earns the Hospital Association of Southern Californias Endorsement
3. Natural Products Association Comments on New GAO Report on Regulation of Dietary Supplements
4. Association for the Advancement of Wound Care (AAWC) Leads Pressure Ulcer Care Initiative
5. The National Association of People with AIDS (NAPWA) and POZ Magazine Partner to Launch The Denver Principles Project
6. American Association for Homecare Supports President Obama in His Commitment to Stop Waste, Fraud and Abuse in Medicare
7. Statement by American Heart Association President Timothy Gardner, M.D. in Response to Health Proposals in President Obamas Budget
8. National Autism Association Announces American Legion Child Welfare Grant for Autism Outreach
9. ACRO Presents at Japan CRO Association Commemorative Symposium
10. Healthcare Businesswomens Association Names Johnson & Johnsons Alex Gorsky, Worldwide Chairman, Surgical Care, as the 2009 HBA Honorable Mentor
11. ArvinMeritor Proud to Sponsor American Heart Association Campaign
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:4/21/2017)... ... 2017 , ... Chicago plastic surgeon, Dr. Anil R. Shah, MD , ... benign bony lump located on the forehead usually attributed to a facial fracture. Their ... pain. Dr. Shah has discovered an approach that is minimally invasive. He is an ...
(Date:4/21/2017)... ... 2017 , ... Young Asset Protection, an insurance provider and ... greater Pittsburgh metropolitan region, is joining forces with the local chapter of the ... , Variety the Children’s Charity is a national organization dedicated to empowering, enabling, ...
(Date:4/21/2017)... ... April 21, 2017 , ... The Patient Advocacy Community of The Beryl Institute ... 2017 Ruth Ravich Patient Advocacy Award in recognition of her extraordinary contributions to ... the award at The Beryl Institute’s annual Patient Experience Conference on March ...
(Date:4/21/2017)... ... April 21, 2017 , ... Crossover Symmetry ... O2X , an active lifestyle company that provides Human Performance Training and education ... police offers, first responders, military officers and others in service through the development ...
(Date:4/21/2017)... ... April 21, 2017 , ... Airway ... new partnership with the highly regarded and well renowned Asian distributor, Discovery Sleep. ... & myTAP PAP Nasal Pillow Mask, and will stabilize and strengthen Airway’s presence ...
Breaking Medicine News(10 mins):
(Date:4/19/2017)... 2017 The Mobile X-Ray product segment is the ... during the forecast period Mobile X-Ray segment is ... mobile X-Ray devices market, which is estimated to be valued ... a CAGR of 7% over the forecast period. Mobile X-Ray ... than US$ 100 Mn in 2017 over 2016. The segment,s ...
(Date:4/19/2017)... NEW YORK , April 19, 2017 /PRNewswire/ ... This report on the prostate cancer ... of the global market. Increasing prevalence of prostate ... as innovation in the development of new drugs ... hormone-refractory prostate cancer drug due to lesser side ...
(Date:4/19/2017)... , April 19, 2017  Sorrento Therapeutics, ... antibody-centric, clinical-stage biopharmaceutical company developing new treatments for ... the closing of its previously announced underwritten public ... at a public offering price of $2.00 per ... estimated offering expenses payable by Sorrento.  The net ...
Breaking Medicine Technology: