The National Catholic Development Conference (NCDC) released the following statement upon the passage of the Senate tax reform bill.
“For 100 years, the Charitable Tax Deduction has been a landmark institution that exemplifies the charitable spirit of Americans. Protecting this deduction and expanding it to the greatest number of people possible encourages charitable giving by all socioeconomic levels. Tax reform should protect and expand this deduction to recognize the impact of charitable gifts, regardless of size, to support those most vulnerable in American society and worldwide,” said Sr. Georgette Lehmuth, OSF, President/CEO of NCDC.
While the current tax reform bill simplifies the federal tax structure by reducing the number of itemizers, it has the unintended consequence of removing the tax incentive for an estimated $95 billion in annual charitable giving. It is forecasted this could reduce giving up to $13 billion annually.
One potential protection against this reduction is expanding the charitable deduction to all Americans. Permitting all Americans to take a charitable deduction, even those who do not itemize and opt for a standard deduction, would encourage charitable giving.
“The current proposed House and Senate legislation could have drastic effects on charitable giving. We support the protection of charitable giving incentives and strongly encourage legislators to include this in tax reform. The charitable deduction is crucial in encouraging support of our missions.” said Sr. Georgette Lehmuth, OSF.