Tax break for charitable giving targeted

For the third consecutive year, the tax deduction for charitable giving is in some policymakers’ sights – and nonprofit officials fear, given the belt-tightening mood in Washington, this time could be the charm.

Nonprofits have stressed that, with governments around the country looking at ways to cut costs, giving incentives to charitable donations is now as important as ever.

But with President Obama proposing once more to curtail the deduction, as he did in 2009 and 2010, and lawmakers indicating that very little is not on the table when it comes to deficit reduction and corporate tax reform, officials in the nonprofit sector feel more on the defensive than they have in previous years.

“We’re actually in a circumstance right now where the question as to why this sector is valuable is going to be conflated with questions of, can the government invest in this?,” said Diana Aviv, the chief executive of Independent Sector, a trade organization for nonprofits. “Is this the best way to spend our dollars?”

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