Lawmakers are working to meet a deadline set by Sen. Max Baucus, a Montana Democrat, and Sen. Orrin Hatch, a Utah Republican, who last month wrote in a letter to their fellow senators that the only tax breaks they plan to preserve as they draft a revision to the code are those that are proven to “(1) help grow the economy, (2) make the tax code fairer, or (3) effectively promote other important policy objectives.”
In a face-to-face meeting, members of the new Faith and Giving Coalition told lawmakers—including Mr. Hatch and Sen. John Thune, a South Dakota Republican—that the charitable deduction meets that three-pronged standard.“We feel it’s important that [Congressional] members hear from the faith-based community because of the importance of private giving to what we do,” said Steven Woolf, senior tax policy counsel at the Jewish Federations of North America. “Those are the dollars that really drive our organizations. Some get as much as 90 percent of their revenues from private giving.”
The officials also reminded lawmakers how charities save the government money by providing social services.“If government had to take over what we do it would be twice as expensive and half as effective,” said John Ashmen, president of the Association of Gospel Rescue Missions.
'You’d Better Speak Up’Jonathan Imbody, vice president of the Christian Medical Association, said his organization had not previously lobbied to protect the charitable deduction. But the approach taken by Mr. Baucus and Mr. Hatch spurred his group to join the coalition.
“When you read the letter that says they’re starting with a blank slate,” Mr. Imbody said, “that’s enough to get you going.“If you want something included you’d better speak up.”