With the outlook for charitable giving to not-for-profit healthcare already "bleak," legislators ought to avoid proposed tax-code changes that could discourage gifts to hospitals even further, an industry group says.
The Association for Healthcare Philanthropy submitted comments to the Senate Finance Committee in response to the options papers released last month for healthcare reform, which proposed limiting the federal tax deduction for donations from wealthy donors.
The proposal would decrease the deduction from 35% to 25% for donors who earn more than $250,000 a year, with the recouped federal taxes going to pay for aspects of the forthcoming healthcare reform package. "It puts forward a scheme that would effectively devalue charitable gifts made by the very people who are in a position to make substantial donations at a time when they are sorely needed," association President and CEO William McGinly wrote to the Senate committee.
The Senate Finance Committee is scheduled to meet behind closed doors this week to begin hammering out details of its healthcare reform proposals.Meanwhile, Sen. Edward Kennedy's Senate Committee on Health, Education, Labor and Pensions will convene starting Tuesday to consider another set of reform proposals aimed at extending health insurance to all.