As you know, NPRI is a 501(c)(3) organization that neither seeks nor accepts any government funding, meaning we rely solely on the generosity of freedom-loving Nevadans like you to fund our work.
But even though we don't accept money from the government, that doesn't mean that the government doesn't affect our funding. Changes at the federal level on tax deductibility for charitable gifts can play a role in our donors' decisions to give — and changes are likely coming.
I'd like to share with you a portion of an email I received from Chris Askin, president and CEO of the Community Foundation of Western Nevada. Chris wrote:
Simply put, most professional advisors whose clients are high income earners suggest now is the time to make a large charitable contribution. We now know who will be President for the next term and we know his position on the tax deductibility for charitable gifts.
President Obama's proposal includes a provision to limit all tax deductions, including giving to charity, to 28 percent. Even though he is proposing raising overall income tax rates, anyone in a tax bracket higher than 28% will not receive a charitable deduction for the full amount of their gift. For the highest-bracket taxpayers this is a potential decline from 35% this year to 28% in 2013, a 20% decrease.
Taxpayers in brackets below the highest 35% marginal rate also may receive less benefit when giving to charity. Under the proposed Obama plan, there will be a haircut to the charitable deduction of 20% for tax brackets above 28%. (Emphasis added.)
Advisors across the state and the nation are telling their clients that now is the time to make their charitable gifts in order to lock in the current benefits.
I hope that as 2012 comes to a close, you'll consider a year-end gift to NPRI.
For those of you who'd like to make a lasting gift, please consider joining our Legacy Society. Information about the Legacy Society at NPRI may be found here: http://www.npri.org/join/legacy-society.
Investing in NPRI is a great way to build a free and prosperous future for our great state. For more than 21 years, we have advanced sound public policy solutions that improve the lives of all Nevadans. Elections, campaigns and politicians come and go, but NPRI's commitment to free-market principles will always remain.
I am grateful for every single one of NPRI's supporters. Without your generosity, the Institute would not exist, and the cause we serve would suffer.
Thank you, most sincerely, for your generosity.
While there may be a lack of certainty regarding charitable-gift deduction in future years, we do have certainty through the end of this year. I hope that during this holiday season, you'll be able to make donations to all the organizations and causes that you value. And I hope you'll consider a year-end gift to NPRI.