HANYS and HTNYS Lead Effort to Protect Tax Deductibility of Charitable Contributions

Several not-for profit health care and education groups joined HANYS and Healthcare Trustees of New York State (HTNYS) in writing to the New York State Congressional Delegation and asking that Congress maintain the current level of federal tax deductibility for charitable contributions. The President’s budget proposal for federal fiscal year 2010 calls for reducing the value of tax deductions for certain higher income individuals to help finance health care reform. HANYS believes including charitable contributions in this provision would significantly reduce the incentive for the charitable giving that supports the community service mission of not-for-profit health care providers.

Joining HANYS and HTNYS on the letter were the Cerebral Palsy Associations of New York State, Commission on Independent Colleges and Universities in New York, Home Care Association of New York State, and New York Association of Homes and Services for the Aging.

The proposal to limit tax deductions comes at a time when the mission of not-for-profit charitable groups is stressed by financial challenges. The groups argued that these financial difficulties would be made worse by any further reductions in philanthropy that resulted from a change in the tax treatment of charitable contributions.

During the recent debate on its budget resolution, the U.S. Senate went on record in support of the current level of tax deductibility for charitable contributions. While prominent U.S. Representatives, such as Ways and Means Chairman Charles Rangel (D-Harlem), have spoken in favor of maintaining the charitable deduction, the House did not make a similar statement during debate of its budget resolution. Contact: Steven Kroll