In his opening statement, Chairman Camp acknowledged the important role played by public charities and private foundations “at home, nationally, and in some cases, across the globe” and stated that tax reform ought to charitable organizations to continue to meet and fulfill their missions.
Citing examples of some changes that could affect the charitable community and the services it provides—
- limiting the tax rate against which contributions may be deducted,
- imposing a dollar cap on total itemized deductions,
- establishing a floor below which contributions may not be deducted, and
- replacing the charitable deduction with a tax credit available regardless of whether the taxpayer itemizes,
Chairman Camp expressed the Ways and Means Committee’s need to hear directly from the charitable community before considering any proposals as part of comprehensive tax reform. He clarified:
This hearing is not about you responding to what we have already done. Instead, it is about gathering your input so that any policies that might be considered will be crafted with you and the communities you serve in mind.
Six panels of witnesses offered varied testimony, which focused on preserving or strengthening current charitable deduction incentives, continued reforms to noncash gifts, and proposals to permanently adopt the IRA charitable rollover.
Included among the more than 40 speakers were various representatives from the United Way, executives from Independent Sector, and individuals representing members of the education community.
In preparation for this hearing, the Joint Committee on Taxation released a report—Present Law and Background Relating to the Federal Tax Treatment of Charitable Contributions, JCX-4-13 [PDF 825 KB].
Read TaxNewsFlash-Exempt Organizations: Legislative update - JCT report on tax treatment of charitable contributions
For more information, contact:
Rick Speizman, National Partner-In-Charge, KPMG’s Exempt Organizations Tax Practice (ExoTax)
+1 (202) 533-3084