Washington, DC - In the midst of negotiations on Capitol Hill to come to a budget agreement to avoid a “fiscal cliff,” the American Health Care Association and the National Center for Assisted Living (AHCA/NCAL) today announced its opposition to any Congressional proposals that would cap income tax deductions or otherwise restrict the deduction for charitable contributions made to not-for-profit organizations. The aggregate cap on the charitable deduction is under consideration as a potential short term revenue solution during the current lame duck session.
“Penalizing our nation’s not-for-profit care providers by limiting their financial resources is simply the wrong way to find savings,” said Mark Parkinson, President and CEO of AHCA/NCAL. “We need to ensure that their funds are not restricted, especially in these tough economic times when federal and state budget cuts have placed a heavy burden on not-for-profits to provide care. Furthermore, we should not consider proposals that disproportionately affect the people who need these organizations the most.”
Research suggests that the aggregate cap on the charitable deduction could reduce charitable giving by as much as $7 billion per year, on top of the nearly $20 billion annual decrease in giving since the economic downturn began in 2007.
“Not-for-profits rely heavily on these donations as a critical funding stream,” said Gary Kelso, Chair of the AHCA Not-For-Profit Council. “Limiting these donations limits our ability to carry out our mission of providing care to our nation’s seniors and persons with developmental and intellectual disabilities.”
AHCA is working with their not-for-profit members on an educational campaign on this issue and is encouraging members to reach out to their Congressional representatives to voice their opinion on it.
“Sixty-eight (68) percent of our membership is made up of not-for-profit long term care providers,” said Veronica Damesyn-Sharpe, Executive Director of the District of Columbia Health Care Association (DCHCA). “These donation revenues provide the funding they need to sustain a high quality level of residential care. We are pleased with AHCA’s position and look forward to working with them to bring awareness to the negative effects of that any cap will have on our quality of care efforts.”
The American Health Care Association and National Center for Assisted Living (AHCA/NCAL) represent more than 12,000 non-profit and proprietary skilled nursing centers, assisted living communities, sub-acute centers and homes for individuals with intellectual and development disabilities. By delivering solutions for quality care, AHCA/NCAL aims to improve the lives of the millions of frail, elderly and individuals with disabilities who receive long term or post-acute care in our member facilities each day. For more information, please visit www.ahca.org or www.ncal.org.