I agree that #1 and #2 of the "triple threat" to healthcare giving are real, as reported by Health Leaders Media: Uncertanty of health care reform and local (county) budget crises nation-wide.
#3 I'd like your opinion about. Here's the situation:
President Obama's proposed 2012 budget caps charitable deductions at 28%, while a Bowles-Simpson Deficit Reduction Commission proposal would reduce the tax incentive for charitable giving to a 12% tax credit for donations that exceed 2% of a taxpayer's adjusted gross income.
Nine out of 10 AHP [Association of Healthcare Philanthropy] respondents surveyed in February said the Bowles-Simpson proposal would cause significant reductions in overall giving to their organization, with 64% saying the adverse impact on major gift-giving would be considerable. About 40% said giving would fall between 10% and 30% if significant changes are made to the current tax incentives for charitable donations—which conservatively could amount to more than a $1.07 billion drop in total annual giving to nonprofit hospitals, AHP said, based on its own FY2009 statistics.
AHP Chair Mary Anne Chern said any reductions in the tax incentives for charitable giving could be "devastating for healthcare in the U.S."
The implied assumption here, of course, is that people donate to get a tax deduction. While that may be true, I cannot believe it's the driver. Especially here in data-driven, outcomes-based Silicon Valley, my strong sense is that we donate because we want to see a positive, measurable change in our community as a result of our help. We want to make Santa Clara County a better place for everyone.
Let me know: If your donation was only partially tax-deductable, would you give as much to the charities you support? Frankly, the future of the VMC Foundation may depend on how we collectively answer this question. I welcome your thoughts: email@example.com