You may remember that we wrote a while back that nonprofit executive were urging Congress and the administration not to reduce the charitable deduction in their negotiations to raise the debt ceiling. Now that President Obama has put his signature on the so-called debt deal, nonprofits will be happy to know that charitable deduction is safe--for now.
In an article on The Huffington Post, we learn that although the initial deal didn't produce any changes, nonprofits are not out of the woods yet. The "Super Congress," created by the deal to find additional deficit reduction measures, may turn their sights on charitable tax breaks yet again. The President has continued to say that he believes these tax breaks are unfair, and nonprofits are working under the assumption that reductions to the charitable deduction will continue to be on the table.
On the other side of the debate, Huffington Post cites a piece from The ETF Daily News that says reducing charitable deductions would help shrink the budget by $50 million. That same article also claims that it would help middle class families that don't usually itemize their deductions. Hopefully the debt ceiling drama didn't tire you out, because it looks like we are in for another political battle once the Super Congress reports back in November.
Read the full article on the debt deal by visiting The Huffington Post.