We have word from our national arts and non-profit organizations in Washington, D. C., that the removal of deductibility for charitable contributions may again be proposed as a revenue-enhancer in a package of deficit reduction proposals being developed by the bipartisan Joint Select Committee on Deficit Reduction, or the so-called "Super Committee." Therefore, we are asking you toTAKE ACTION TODAY and contact the Arizona Congressional delegation and express your concern over the serious impact this action will have on charitable giving to the arts in Arizona. We are asking that you contact Senator Jon Kyl, in particular, because he is a member of the Super Committee and thought to have great influence in this process.
Background
For three consecutive years, the Obama Administration has proposed capping the value of charitable deductions to 28 percent for those taxpayers who itemize. Currently, the value of the deduction is tied to the marginal income tax rate the donor pays; 35% for the highest earning families. The administration has used this proposal to help close revenue gaps for everything from the newly enacted health care law to federal deficit reduction. Each time, Congress has passed on seriously considering the cap - with bipartisan support. The feeling has been in the words of Utah Senator Orrin Hatch that, "Charitable donations are the lifeblood of charities and the last thing Congress should do is interrupt the blood supply."
Most analysis, including a recent Congressional Budget Office study, show charitable giving would drop if the tax incentive's value were to be reduced. Urban Institute research shows that charitable giving to the arts would be among the most affected by this kind of tax change. However, reports this week on the work of the Super Committee indicate that reduction or elimination of the charitable reduction may be included in a package of deductions that would eliminated in favor of lowering overall rates.
Act Today
This would be devastating to the non-profit arts community, especially in Arizona where arts funding from all sources has declined nearly 70% in the last four years. Therefore, we are asking you contact Senator Kyl and the rest of the Arizona delegation and make the following suggested points.
1. Funding for the arts in Arizona from ALL sources - government, individual, corporate and foundation giving - has declined dramatically in the last four years - more than 2/3s from all sources. Removing the incentive of income tax deductibility will cause further economic damage to non-profit arts organizations in Arizona that already are struggling - some more than they ever have in their history.
2. According to the historic "partnership" model of funding for the arts in Arizona and across our country, earned income (ticket sales, admissions, etc.) comprise only 40% to 60% of organizational budgets. The rest comes from contributed sources -- corporate and individual giving, a small percentage of government support and foundation support - further exacerbating the impact of reducing the tax incentive for charitable giving.
3. At a time when the arts as well as other interests in the non-profit sector are being asked to depend less on government funding and more on private sector funding, it is inconsistent to remove one of the primary incentives for the private sector to contribute to the arts and other non-profit activities.
4. In Arizona, the arts comprise a huge part of a arts and culture industry that employs nearly 50,000 individuals with between $500 million and $1 billion in economic impact. Jobs, tax revenue and support for related businesses is at stake if non-profit arts organization sustained further economic damage.
Please personalize the impact of further loss of contributed dollars to your own organization, the services you can provide to your community, especially young people and other special audiences that otherwise would not have access to your programs.
Contact the Arizona Super Committee Member
Senator Kyl
Office Mailing Address: 730 Hart Senate Office Building, District of Columbia 20510-0304
Phone: (202) 224-4521
Contact the Arizona Congressional Delgation
Senator McCain
Office Mailing Address: 241 Russell Senate Office Building, District of Columbia 20510-0303
Phone: (202) 224-2235
Representative Paul Gosar - AZ CD 1
Office Mailing Address: 504 Cannon House Office Building, District of Columbia 20515-0301
Phone: (202) 225-2315
Representative Trent Franks - AZ CD 2
Office Mailing Address: 2435 Rayburn House Office Building, District of Columbia 20515-0302
Phone: (202) 225-4576
Representative Ben Quayle - AZ CD 3
Office Mailing Address: 1419 Longworth House Office Building, District of Columbia 20515-0303
Phone: (202) 225-3361
Representative Ed Pastor - AZ CD 4
Office Mailing Address: 2465 Rayburn House Office Building, District of Columbia 20515-0304
Phone: (202) 225-4065
Representative David Schweikert - AZ CD 5
Office Mailing Address: 1205 Longworth House Office Building, District of Columbia 20515-0305
Phone: (202) 225-2190
Representative Raul Grijalva - AZ CD 6
Office Mailing Address: 1511 Longworth House Office Building, District of Columbia 20515-0307
Phone: (202) 225-2435
Representative Gabrielle Giffords - AZ CD 8
Office Mailing Address: 1030 Longworth House Office Building, District of Columbia 20515-0308
Phone: (202) 225-2542
To find contact information for the other Super Committee members:
Click here for the House of Representatives
Click here for the Senate
