Capitol Correspondence - 04.29.19

ANCOR Supports Bill Restoring Charitable Tax Deduction

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On April 24, ANCOR sent the offices of U.S. Representatives Chris Smith (R-NJ) and Henry Cuellar (D-TX) a letter of support for their leadership on a new bill. Titled the Charitable Giving Deduction Tax, HR 651, the bill would restore the tax deduction for donations to non-profits which the 2017 tax reform bill had removed. This has been an issue of significance for disability supports, many of which are non-profits and relied on donations as needed financial support. The removal of the charitable tax deduction was one of the reasons ANCOR opposed portions of the Tax Cuts and Jobs Act of 2017, also referred to as the 2017 tax reform bill.

As written in the letter:

“While charitable donations could not entirely substitute for Medicaid funding, they provide necessary flexibility for disability organizations which help people at the most important points in their lives. For example, disability supports help individuals transition out of the school system into employment supports. Others help people with I/DD who also struggle with addiction overcome those struggles. Donations ensure organizations such as these can better meet fluctuations in demand that cannot be foreseen during the budget process. The charitable tax deduction is an important incentive for people to support this work. Without it, the Tax Policy Center of the Urban Institute and Brookings Institution estimated that charitable deductions could decrease by one-third. As of early 2019, this prediction has rung true for ANCOR members, including members in Connecticut who have publicly shared seeing decreases in donations.

By restoring the charitable tax deduction, H.R. 651 validates the importance of charitable giving in our society. The bill strengthens important work in the non-profit sector that is often not center stage to the headlines of the day, but nonetheless touches on all the important issues in people’s lives. Thank you for your support.”