The Association of Fundraising Professionals (AFP) has released a statement regarding President Obama’s statements that he would continue to support his proposal to reduce the charitable deduction for taxpayers earning more than $250,000 annually. AFP’s President and CEO Paulette V. Maehara issued the following statement:
“Preliminary data from AFP’s State of Fundraising survey shows that 2008 was the worst year for charitable fundraising in a decade. Anecdotal evidence from our members suggests that the current fundraising climate may be the most challenging they have ever faced in their lifetimes. The president’s unprecedented proposal, which would effectively impose a tax on charitable giving, is unneeded and will further hurt the ability of charities to provide services.
“It is incorrect to suggest that incentives do not play a role in charitable giving. While people decide to give for any number of reasons, incentives are a critical factor in determining how much someone gives, especially as gifts get larger. A study by Bank of America reveals charitable giving by taxpayers earning $250,000 or more annually increases dramatically with wealth, starting at an average of $32,000 and rising to $855,000 for those making $5 million or more. Therefore, the reduction in the charitable deduction could have a very significant impact.
“In these challenging economic times, charities and nonprofits are being asked to provide even greater levels of assistance while experiencing reduced donations and resources. The federal government should seek ways to bolster charitable giving — as opposed to requiring charities to do more with less.”
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