FPN Update to Members on Fiscal Cliff Deal   On January 1, 2013, Congress passed the American Taxpayer Relief Act of 2012 (H.R. 8, as amended) in a deal to avert the fiscal cliff, and President Obama signed the bill into law on January 2. Here are key highlights from the new law that are most relevant to philanthropy:     > Charitable Deduction Preserved: Perhaps the best news in the deal is that it includes no cap on charitable deductions, which is something that FPN and our colleague organizations have been working hard to avoid. The charitable deduction will continue to be coupled with an individual's or household's corresponding tax rate.       > IRA Charitable Rollover Extended: Another piece of good news in the law is that the IRA Charitable Rollover provision has been extended through the end of 2013. This provision permits tax-free distributions of up to $100,000 per taxpayer, per year to an eligible charity from an IRA held by someone age 70.5 or older. The provision includes two transition rules to allow donors to make 2012 contributions, which are described in more detail by the Council on Foundations.        > Estate Tax Set at Permanent Rate: The new law permanently sets the estate tax at a top tax rate of 40% with a $10 million exemption for couples, $5 million for individuals.     > Pease Limitation on Itemized Deductions Reinstated: One point of concern in the law is that it reinstates the so-called Pease Limitation on itemized deductions for higher income taxpayers. As described by the Council on Foundations, in 2013, itemized deductions for higher income taxpayers will be reduced by the lesser of (1) 3% of the amount by which the taxpayer's income exceeds $250,000 for individual filers, $275,000 for heads of households, or $300,000 for married couples filing jointly or (2) 80% of the value of the taxpayer's itemized deductions. It should be noted that the limitation applies to all itemized deductions, not just charitable deductions, and some organizations have called for Congress to exempt charitable deductions from the Pease Limitation. The Council on Foundations and the Alliance for Charitable Reform offer examples to illustrate how the Pease Limitation could affect taxpayers.   This agreement leaves major fiscal and tax policy issues unresolved, so there is still a great deal of potential for Congress to introduce proposals over the next few months that could have a significant negative impact on philanthropy and the broader social sector. FPN will continue to monitor activities in Washington and keep our members updated on new developments and new action that may be required.                 More on Fiscal Cliff Deal   FPN's Public Policy Role   Foundations on the Hill Council on Foundations Independent Sector National Council of Nonprofits Alliance for Charitable Reform Infographics The Danger of Capping Deductions The Power of the Charitable Deduction   FPN plays an active role in representing philanthropy in Florida and in advocating on behalf of philanthropy in Florida. FPN focuses its public policy work on the state level, but is also active in representing philanthropy with Florida's congressional delegation, guided by six public policy principles.   These developments make the 2013 Foundations on the Hill event on March 19-20 more important than ever, as philanthropy gathers in our nation's capital to provide a collective voice on the impact of our sector. FPN will be leading Florida's delegation for the event. Learn More & Register Today.   If you have any questions about this or other public policy issues, please contact FPN President & CEO David Biemesderfer at 813-983-7396, dave@fpnetwork.org.