CGC Applauds Jeb Bush Preservation of the Charitable Deduction in Tax Plan
WASHINGTON, D.C.— In response to presidential candidate Jeb Bush’s tax plan, which would preserve the full scope and value of the charitable deduction, the Charitable Giving Coalition (CGC) released the following statement:
“On behalf of the Charitable Giving Coalition, a diverse group representing private and community foundations, their grantees and independent charities, as well as nonprofit organizations and the associations and umbrella groups that serve their needs, we applaud Jeb Bush’s decision to preserve the charitable deduction in his tax reform plan.
“In doing so, Governor Bush acknowledges the fact that the charitable deduction is different than other itemized deductions in that it encourages individuals to give away a portion of their income to those in need. It rewards a selfless act, and it encourages taxpayers to give more funds to charities than they would otherwise have given.
“A calculation of the deduction suggests that those in need receive $2.50 of benefit for every $1 of tax benefit going to the donor. In 2014, individual Americans gave over $258.51 billion to support charitable causes, 83 percent of which was donated by those who itemized and likely claimed a charitable tax deduction, according to the annual Giving USA report. Some economists believe it is prudent to retain the full scope and value of the existing charitable deduction.
“Furthermore, nonprofit organizations that rely on charitable gifts to provide valuable services to communities have a powerful impact on the American economy. These organizations generate $1.1 trillion every year in the form of jobs and services. One in 10 U.S. workers is employed by the nonprofit sector, which provides 13.7 million jobs. Employees of nonprofit organizations received roughly nine percent of wages paid in the U.S., and the nonprofit sector paid $587.7 billion in wages and benefits.
“As charities struggle to raise additional funds to meet increased demands for their services, it is imperative that we continue to support the charitable deduction.
“Because the charitable deduction is unique and promotes giving to benefit humanity, we thank Governor Bush for preserving the value of itemized deductions for charitable contributions.”
In June, the CGC wrote a letter to every officially declared candidate featured in major polls for the 2016 election for President of the United States urging them to support the full preservation of the charitable deduction. The letter was signed by 40 nonprofit organizations and can be found here.