The idea of capping the charitable deduction “is as serious a threat to religious organizations as anything the federal government has done in recent decades,” said Richard Land, president of the Ethics & Religious Liberty Commission (ERLC). “This would be catastrophic in its impact, particularly on those large gifts that many religious organizations, colleges, universities and ministries, as well as churches, depend upon for continuing operations,” said Land.

A proposal to limit charitable deductions would be devastating for churches, religious organizations and other nonprofits if adopted by the federal government, says a church-state expert.

Leaders in both political parties have suggested further restricting charitable deductions for at least some Americans who itemize on their tax returns as a way of helping avert the “fiscal cliff” facing the country Jan. 1. Without congressional action, the tax cuts implemented under President George W. Bush will expire on that date, producing about $7 trillion in tax increases. At the same time, inaction will result in sequestration — automatic cuts to defense and non-defense spending of $55 billion each.

The idea of capping the charitable deduction “is as serious a threat to religious organizations as anything the federal government has done in recent decades,” said Richard Land, president of the Ethics & Religious Liberty Commission (ERLC).

“This would be catastrophic in its impact, particularly on those large gifts that many religious organizations, colleges, universities and ministries, as well as churches, depend upon for continuing operations,” said Land. “Everything we know from past experience tells us if they cap deductions it will seriously erode charitable giving.”

Enacting such restrictions would not only reduce giving to churches and charities but would harm services such organizations provide to the needy, said Land and other foes of capping such deductions.

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