As president for the Hampton Roads Chapter of the Association of Fundraising Professionals, I’m fortunate to receive timely information and updates about public policy at the national level. Jason Lee, general counsel for AFP, included an analysis in an email today regarding last night’s State of the Union address. In terms of an impact on charitable giving, it looks like a mix of good news and wait-and-see:
“We were encouraged to see that the President did not reference the 28 percent cap on itemized deductions during the State of the Union last night-though, it is likely that the cap will once again be included in his upcoming FY2016 Budget. Instead, the President introduced his proposal to increase the capital gains tax for the “top 1%.” Details of that plan indicate that gifts to charities would be exempt from this proposal, which is good news for the sector. The capital gains plan, however, will meet stiff opposition from the Republican-controlled Congress.”
As Lee also pointed out, the Chronicle of Philanthropy has an article that summarizes the issue.
Let’s stay cautiously optimistic—check back to our blog or follow us on Facebook or Twitter to stay up to date.