White House budget cut to charitable deduction alarms philanthropists and non-profits

(By Gautham Nagesh, The Daily Caller) - The Obama administration’s fiscal 2011 budget proposes cutting the tax deduction for charitable donations, alarming both philanthropists and non-profits across the country.

The White House is expecting to collect an additional $291 billion over the next decade by reducing the write-off for families earning over $250,000 despite the fact Congress roundly rejected such a measure last year. While the administration is portraying this as a populist move, experts have said the end result will be a significant blow to charities and non-profits already reeling in the midst of the recession.

“It’s frankly surprising to see this proposal come back this year, it was very controversial last year,” said Tom Riley, vice president for communications at the Philanthropy Roundtable. “This of all times isn’t the time to take actions that would discourage charitable giving. The need for non-profits hasn’t been higher for a generation.”