Advocacy Wins: Charitable Giving Income Tax Deduction

Summary

The House Ways & Means committee made it clear that it intended to enact sweeping tax reforms in 2013. In discussions, everything was put on the table — including the income tax deduction individuals receive for charitable giving.

Why We Care

Charitable giving is foundational to the success of United Way and other social service organizations. Nonprofits will need more support, not less, to fill the gap left by reduced federal capacity to help struggling individuals and families.

Nonprofit organizations support Michigan’s economic success in a variety of ways. In addition to ensuring that communities receive vital services and fostering innovative solutions to address social problems, Michigan nonprofits generate $137 billion each year in overall economic activity. Eleven percent of all Michigan workers are employed by nonprofits, and nonprofit employment remained remarkably stable in the past several years.

United Way for Southeastern Michigan aimed to fundraise upwards of $35 million in its 2013 campaign from individuals and corporate donors. Those dollars count as charitable deductions and are critical to donors who join the effort to improve our community.

Advocacy Campaign Results

Twenty-eight people took action by writing 28 letters which were sent to 11 elected officials.

Results

Thanks to the efforts of advocates from our community and across the country, congress passed H.R. 2 ‘The Medicare Access and CHIP Reauthorization Act’ with votes of 392-37 in the House, and 92-8 in the senate. The act extends CHIP for two more years and ensures that the 90,000 Michigan children who rely on CHIP will continue to have access to affordable, high-quality health care.