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April 1, 2013 / ivytechartspartner

Nonprofit Arts and Charities Spared in First Fiscal Cliff: What Will Happen Next?

 

After months of contentious negotiations over the fate of the Bush-Obama tax cuts and massive across-the-board federal budgetary cuts popularly known as the “fiscal cliff,” the U.S. Congress and President Obama struck an eleventh-hour deal that spared 98 percent of Americans a hefty tax hike with the passage of the American Taxpayer Act of 2012 on January 2, 2013.

Some lawmakers had proposed tax policy changes to the charitable deduction, an important source of funding for arts organizations of all sizes, in an attempt to raise revenue and offset tax cuts. Americans for the Arts and the wider spectrum of the charitable sector all came together to urge Congress to spare the charitable deduction, which has a unique place in the tax code to incentivize giving to social service programs. Thankfully, plans to limit the value of the charitable deduction were scrapped in the final deal, but the possibility of changes to the deduction continues. At a recent hearing of the House Ways and Means Committee, a large number of charitable organizations testified on the importance of maintaining the incentive for donors that support their work.

As Congress and the president turn toward the rest of the “mini cliffs,” dealing with the remainder of federal spending and deficit reduction plans, Americans for the Arts remains committed to supporting policies that preserve tax incentives for charities. For more information, visit the Arts Action Fund online

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