Tax Bill Discourages Vital Private Support of Education
Charitable gifts are vital to helping colleges, universities and independent schools achieve their missions of transforming lives and society. Unfortunately, the Tax Cuts and Jobs Act will make it more difficult for U.S. educational institutions to raise and manage the private support necessary to fund student scholarships, groundbreaking research, top-notch faculty and new facilities.
To offset the negative consequences that doubling the standard deduction threshold will have on charitable giving, CASE urges lawmakers to enact a universal charitable deduction as part of tax reform. Such a proposal would allow all taxpayers to subtract their charitable gifts from income before they determine whether to take the standard deduction or itemize their tax returns. By not including a universal charitable deduction, and by phasing out and repealing the estate tax, the Tax Cuts and Jobs Act will result in a significant decline in giving to educational institutions.
Additionally, we oppose the excise tax on private college and university endowments included in the bill. This proposal amounts to taxing the endowed charitable gifts of donors, redirecting funds away from their intended charitable purpose of supporting students, research and academic programs.
For the past 100 years, U.S. tax policy, through the charitable tax deduction, has encouraged individuals to make philanthropic gifts to colleges, universities and independent schools. As tax reform legislation moves through Congress, CASE will continue to urge lawmakers to build on this proud tradition by including proposals that encourage all Americans to give more to educational institutions.
An educated citizenry is certainly something on which we all can agree, so let's do our part to ensure that our educational institutions have the best possible chance of securing the resources they need to achieve their life-changing missions.
About CASE
CASE—the Council for Advancement and Support of Education—is a global, not-for-profit membership association with a vision to advance education to transform lives and society.
CASE is the home for advancement professionals, inspiring, challenging, and equipping them to act effectively and with integrity to champion the success of their institutions. CASE defines the competencies and standards for the profession of advancement, leading, and championing their dissemination and application with more than 97,000 advancement professionals at 3,100 member institutions in 80 countries.
Broad and growing communities of professionals gather under the global CASE umbrella. Currently these include alumni relations, development services, communications, fundraising, government relations, and marketing. These professionals are at all stages of their careers and may be working in universities, schools, colleges, cultural institutions, or other not-for-profits. CASE uses the intellectual capital and professional talents of a community of international volunteers to advance its work, and its membership includes many educational partners who work closely with the educational sector.
Headquartered in Washington, D.C., CASE works across all continents from its regional offices in London, Singapore, and Mexico City to achieve a seamless experience for all its stakeholders, particularly its members, volunteers, and staff.