Press Release: Charitable Deduction

Mental Health America is Joining With Hundreds of Nonprofits in Warning Congress of Negative Consequences of Limiting Charitable Deduction

Contact: Steve Vetzner, (703) 797-2588 or svetzner@mentalhealthamerica.net

ALEXANDRIA, VA. (November 19, 2013)—Mental Health America is joining tomorrow with hundreds of nonprofits from across the country to warn Congress of the cascading economic and social consequences of any limits to the charitable tax deduction. The warning comes as federal lawmakers consider reducing the federal budget deficit and a range of tax reforms designed to grow the economy.

The Charitable Giving Coalition, a group of more than 60 nonprofits, foundations and charitable organizations, including Mental Health America, said proposals to the limit the charitable deduction would devastate the nonprofit sector that millions rely on for jobs, support and services.

“To keep pace with a growing demand for vital community services, Congress should be encouraging more charitable giving, not less,” said David Shern, Ph.D., interim president and CEO of Mental Health America. “Under proposed changes, the nonprofit sector, which employs one out of ten Americans and generates more than $1 trillion every year for important human services, would suffer a loss of billions of dollars in donations used to aid the most vulnerable, educate, heal, nurture and innovate–often in ways that government and the private sector cannot.”

Members of the Coalition are meeting on Wednesday, November 20, in Washington, D.C. with dozens of individual lawmakers and their staff to educate them about the lifeline charitable giving represents.

According to a new report issued by Giving USA, those who itemized their charitable contributions represent 81 percent of the total estimate (nearly $229 billion) of giving by individuals in 2012. Estimates show that for every dollar subject to the deduction, the public typically receives $3 of benefit. It is unlikely government could find a more effective way to leverage private investment in community services.

“Charitable giving provides a lifeline for Mental Health America and our 240 affiliates around the country,” said Dr. Shern.

He said Americans support the charitable deduction because it works. According to a United Way Worldwide survey, nearly 80 percent of Americans believe reducing or eliminating the charitable tax deduction would have a negative impact on charities and the people they serve. Of those who indicate they would reduce charitable giving, the majority (62 percent) would have to decrease their contributions by 25 percent or more. Two out of every three Americans (67 percent) are opposed to reducing the charitable tax deduction.

As the tax reform debate continues, Mental Health America plans to be active in making sure lawmakers understand what is at stake for communities and charitable giving, including a new Protect Giving YoutTube channel and a petition drive. Charity and foundation leaders are also sharing with lawmakers an infographic illustrating the ripple effects of the charitable sector at work in communities every day.

“Given the tremendous needs in our communities, we simply can’t afford to weaken a 100-year-old American tradition that encourages giving,” said Dr. Shern. “We are committed to working with elected officials to identify the best ways to protect the unique value of the charitable deduction.”

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Mental Health America (www.mentalhealthamerica.net), founded in 1909, is the nation’s leading community-based network dedicated to helping all Americans achieve wellness by living mentally healthier lives. With our 240 affiliates across the country, we touch the lives of millions—Advocating for changes in mental health and wellness policy; Educating the public & providing critical information; and Delivering urgently needed mental health and wellness Programs and Services.

The Charitable Giving Coalition: Representing private and community foundations, their grantees and independent charities, the Charitable Giving Coalition’s members include United Way Worldwide, the Salvation Army, Catholic Charities USA, the American Council on Education, Jewish Federations of North America, the American Institute for Cancer Research, the Association of Fundraising Professionals, Independent Sector, the Council on Foundations, and The Philanthropy Roundtable, among others. Formed in 2009, the coalition is a broad cross-section of nonprofit organizations across the country, including both the nonprofit organizations themselves and the associations and umbrella groups that serve their needs. The coalition is dedicated to preserving the charitable giving incentive that ensures that our nation's charities receive the funds necessary to fulfill their essential philanthropic missions. The coalition provides a unique and unified voice on Capitol Hill on issues affecting the charitable deduction, a voice composed of both direct lobbying and robust grassroots advocacy. www.protectgiving.org, #protectgiving, @protectgiving