Monthly Archives: March 2013

Protecting the Charitable Deduction at FOTH

fothThis morning over 300 philanthropic leaders gathered together at the 2013 Alliance for Charitable Reform Summit for Leaders as part of Foundations on the Hill, an annual opportunity for grantmakers and regional associations to meet with their federal lawmakers in Washington, D.C. At the summit, they heard from Congressional staff and public policy leaders about the most pressing issues facing the charitable sector.

As foundation leaders and regional association staff meet with Members of Congress across the next two days, they’ll be stressing the importance of protecting the charitable deduction. A donor who itemizes can take a deduction on his or her gift at the same rate as his or her tax rate. The charitable deduction encourages charitable giving, benefiting communities across the country. As Congress considers ways to raise revenue and simplify the tax code, the charitable deduction has come under scrutiny as a potential revenue generator. However, the charitable deduction is very different from other tax benefits because it is the only one that encourages individuals to give away a portion of their income without getting anything back.

Any effort to cap or limit the charitable giving will have a devastating impact on nonprofits. Academic studies of President Obama’s proposed cap of 28 percent project that up to $5.6 billion in charitable giving would be lost each year—that’s the equivalent of the annual operating budgets of the Red Cross, Goodwill, the YMCA, Habitat for Humanity, the Boys and Girls Clubs, Catholic Charities, and the American Cancer Society combined. The Forum, the Council, and the Philanthropy Roundtable encourage Congress to advance proposals to increase giving, not limit it.

To follow all the action as foundations head to the Hill, follow the hashtag #FOTH on Twitter. For more information on how to protect the charitable deduction, visit the website of the Charitable Giving Coalition at The time to use your voice is now.


Next Gen Donors

The Frey Chair for Family Philanthropy program at the Johnson Center for Philanthropy, and 21/64, a nonprofit consulting practice specializing in next gen and multigenerational strategic philanthropy, have released Next Gen Donors: Respecting Legacy, Revolutionizing Philanthropy.

This first-of-its-kind research examines the next generation of major donors and studies this crucial group directly through interviews. Study participants were carefully screened to ensure that they are 21 to 40 years old and that fit study criteria to be considered high-capacity donors.

This research endeavors to find understand how next gen major donors think about philanthropy. Their conversations revealed four key findings:

  1. Next Gen major donors are driven by values, not valuables. While often portrayed as entitled, Gen X and Millienial donors revealed themselves to be mindful of the responsibility their wealth creates, seeking to balance family legacy with assessing the challenges of the world today.
  2. They want impact they can see and they want to know how their involvement contributed to that impact.
  3. They want to go “all in,” sharing not only their time, talent, and treasure, but also their ties. They want to develop close relationships with the organizations and causes they support. Next Gen donors learn about causes through their peer networks, and they believe in collaborating with peers to increase impact.
  4. Next Gen donors are actively thinking about their identities and legacies as philanthropists.

“They want to make philanthropy more impactful, more hands on, more networked. While these next gen donors want to change things fundamentally, they want to do so in responsible ways, honoring the past while improving the future. They take their roles as major donors seriously. And as they grow into these roles, they are also eager to be taken seriously,” writes the report’s authors. Sounds like we’re in good hands.

Download the full report at