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Schrum, CASE Urge Lawmakers to Preserve Charitable Deduction at Congressional Hearing

Jake B. Schrum, president of Southwestern University and former CASE Board Chair, testified on the importance of preserving the charitable deduction during a Feb. 14 U.S. House Ways and Means Hearing on Tax Reform and Charitable Contributions. Schrum delivered his testimony on behalf of CASE and the National Association of Independent Colleges and Universities (NAICU). View video of President Schrum's testimony.

In his testimony (pdf), Schrum said that a cap, or limit, on the charitable deduction "targets the most generous high-income donors, individuals and families who want to make large gifts to educational institutions or other charitable organizations." He also reminded committee members that students and others served by educational institutions would feel the brunt of a charitable deduction cap, not high-income donors.

In addition to Schrum, more than 40 witnesses spoke during the Ways and Means Committee hearing, with the overwhelming majority testifying in favor of preserving the charitable deduction. University of New Hampshire President Mark Huddleston testified on why private philanthropy is critical to public colleges and universities, particularly in an era of declining state and local support. Eugene Tempel, dean of the Indiana University School of Philanthropy, pointed out how increases in tax rates combined with a cap on the charitable deduction would produce a "double whammy" on high-income households, reducing their incentive to give to charitable organizations.

In his opening statement, Ways and Means Committee Chairman Dave Camp (R-Mich.) said that the purpose of the hearing was to allow lawmakers to hear from the charitable community before considering any comprehensive tax reform proposals that could affect charitable organizations. Representatives Dave Reichert (R-Wash.) and John Lewis (D-Ga.) are chairing the committee's tax reform working group on charitable/exempt organizations.

Links to written testimony for all witnesses are available on the Ways and Means Committee website. An archived webcast of the hearing is also available.

A recap of the hearing is available on the CASE website.

Updated March 1, 2013

U.S. Legislative and Regulatory Affairs

• Charitable deduction
• Estate tax reform
• IRA charitable rollover
• Congressional scrutiny of endowments
• State registration for charitable solicitation
• Alumni association affinity programs
• Form 990
• Underwater endowments

For further information about CASE's public policy efforts, contact Brian Flahaven, director of legislative, foundation and recognition programs, at flahaven@case.org or +1-202-478-5617.