Tax Deductibility Changes Could Hit Not-for-Profits and the People They Serve

ALBANY, NY (04/16/2009)(readMedia)-- Limit tax deductibility for charitable contributions, and you'll hit the not-for-profits where it hurts.

That's the message NYAHSA and five other state organizations are delivering to New York state's Congressional delegation, pressing them to object to the proposal in President Obama's budget that would reduce the value of tax deductions for charitable contributions for certain higher income individuals.

Not-for-profits are especially hard-hit these days. They face myriad fiscal challenges from reduced government support, stock market devaluation, the credit crunch, diminished grants and budget cuts. Water down the benefits of a tax deduction on charitable contributions and even that ever-dwindling source of help may dry up.

The text of the letter to the representatives and senators follows.

April 16, 2009

Dear Members of the New York State Congressional Delegation:

As representatives of the not-for-profit charitable community, we ask that you support the

current level of federal tax deductibility for charitable contributions. The President's budget proposal calls for reducing the value of tax deductions for certain higher income individuals. We believe the inclusion of charitable contributions in this provision would significantly reduce the incentive for the charitable giving that supports the multiple community service missions of our memberships and charities.

The proposal to limit tax deductions comes at a time when the mission of not-for-profit

charitable groups is being stressed by current financial realities. Our memberships and

organizations are struggling to maintain the services our communities need and expect at a time when the financial underpinnings that supports those services are under pressure.

Not-for-profits statewide are contending with reductions in cash flow due to a decline in contributions and investment income. In addition, many organizations have seen balance sheet reductions and exploding pension obligations as a result of the decrease in market valuation of assets, the tightening of operating credit lines, and reductions in financial support from government. These financial challenges will be made worse by any further reductions in philanthropy that result from a change in the tax treatment of charitable contributions.

We appreciate all that you have done to support the not-for-profit charitable groups that are part of society's safety net, work to improve the lives of New Yorkers, and create jobs. We ask you to join with us in protecting that mission by protecting the federal tax deduction for charitable contributions.

If you have any questions, please see the contact information below for any of the undersigned organizations.

Sincerely,

Susan Constantino

President & Chief Executive Officer

Cerebral Palsy Associations of New York State

Abe Lackman

President

Commission on Independent Colleges and Universities

Daniel Sisto

President

Healthcare Association of New York State

Sue Ellen Wagner

Executive Director

Healthcare Trustees of New York State

Joanne Cunningham

President

Home Care Association of New York State

Daniel Heim

Vice President for Public Policy

New York Association of Homes and Services for the Aging

-30-