Foundations on the Hill March 19-20, 2013 Washington, D.C.

House Ways and Means Committee Hearing on Tax Reform and Charitable Contributions

February 14, 2013

Bill Gates on the Charitable Deduction (Fox Business Network)

What the Other Industries are Saying

Core Messages

• Philanthropy is vital to our communities, our economy, and our future.

Core Messages

• The charitable deduction works. It is a unique and effective incentive to give that supports vital services and economic development.

Core Messages

• A cap or limit to the charitable deduction would cost billions of dollars each year in contributions that help address the critical needs of our communities.

Core Messages

• Americans value and support charitable giving.

Staying on Message• Listen carefully. Don’t hesitate to ask questions to make

sure you fully understand the context. • Start with the most important messages.• Stay cool, calm, and collected.• Don’t respond to thirdhand information or statements

without documentation.• It’s okay to say “I don’t know.” • Bridge to the message.

Rep. Sander Levin (D-Mich. 09)

“In their last two budgets House Republicans have proposed cutting the top marginal rate to 25%, creating a $5 trillion revenue loss. Some proponents have suggested one way, one major way, to fill that hole is by cutting loopholes and acting on the largest deductions and credits, which includes the charitable deduction.”

“What’s the dynamic that enables us to move forward on some things that would appear to be common sense and have broad support? What’s the key to making it happen?” – on the excise tax

Rep. Earl Blumenauer (D-Ore. 03)

“Should we give preferential tax treatment to donors who give to U.S. organizations more than 50% of the time rather than internationally?”

Rep. Charles Boustany (R-La. 03)

“Are we talking about lowering the deduction, or getting rid of it altogether…What are we doing here?”

Rep. Jim McDermott (D-Wash. 07)

“So much of what is given through this deductible contribution doesn’t go to serve those who have the most basic of needs…Those who give the most don’t direct their giving to those who need the most.”

Rep. Xavier Becerra (D-Calif. 34)

“Generally, what is the amount of money given to not-for-profit organizations…How much goes to assist people that have problems that concern poverty or their well-being…Not talking about the perpetuation of the arts or tennis…but those things that are directly related to issues such as education, health care, and poverty?”

Rep. Charles Rangel (D-N.Y. 13)

“If people experience such a ‘warm-glow’ from giving, then donors can be said to benefit from their gifts. In this case, the donation is, at least in part, a personal expenditure and a deduction for the full amount of the donation should not be allowed under a comprehensive income tax system.” – Joint Committee on Taxation

#MyGivingStory

A Pep Talk from Kid President

THE CHARITIES ARE COMING. Have you forgotten how intenselycharitable organizations want protect their favored tax break?Don’t worry; they’re coming to town to … storm D.C. next weekto educate lawmakers on the “inextricable link betweencharitable giving and thriving communities — from jobs andhuman services.” It is part of the annual Foundations on the Hillconference....