The Triple EEE Foundation

Save the Charitable Tax Deduction from the Fiscal Cliff

/ Exponent Philanthropy / 1 Comment

By Floyd Keene, The Triple EEE Foundation

Currently, the charitable tax deduction (CTD) is under attack. As our nation approaches the “fiscal cliff,” limiting the CTD for wealthy taxpayers is one part of a possible fiscal cliff remedy.

  • Recently on national TV, Sen. John McCain said he is “very much opposed” to a tax raise but would support closing loopholes such as the CTD.
  •  For years, the Obama administration has submitted budget proposals that limit charitable deductions for persons above the 28% tax bracket.

Wait! Is this really happening? The Democrats and at least one major Republican agreeing on something? It could happen. And the victim would be the American people (giver and receiver alike) that the CTD serves.

THE NEW REALITY

There is a new reality in our nation that is likely to continue no matter how the fiscal cliff is vaulted, and no matter which party wins future elections:

  1. There will be less government spending on social programs, and
  2. There will be an ever-increasing need for social programs, caused by a slow-growth economy and aging population base

These are truisms. Together they create an environment where there is a greater need than ever before for private social spending. Reducing the CTD in such an environment is, put simply, an irrational public policy motivated by political compromise rather than logical thinking. Continue reading →

Society and Philanthropy – A New Paradigm

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By Floyd Keene, The Triple EEE Foundation

“Paradigm” is an overused word. However, there is no question that today a new paradigm is staring U.S. society squarely in the face. This new paradigm encompasses:

  • Less government spending on social programs  (no matter which party wins this fall’s and future elections)
  • An ever-increasing need for social programs, caused by a slow-growth economy and aging population
  • The need for American philanthropy to find new ways to address the above truisms.

Yes, over the next ten years American philanthropy must change. If it doesn’t, then it will be missing an amazing opportunity to serve the American people. Philanthropy should act as a wonderful orchestra, composed of talented and diverse individuals, providing needed sustenance to society.

However, all too often in the past, philanthropy has been reactive to specific social needs, satisfied with feeling good about itself. Instead, philanthropy must find innovative ways to utilize its existing resources more effectively, so as to significantly aid society, the economy, and most importantly, its own intrinsic and diverse social values.

The coming change in American philanthropy will likely involve the following:

NEW FORMS OF ORGANIZATION

1.  Future philanthropy will involve an ever-increasing transformation towards organizational entities that are created both to make a reasonable return on investment and serve specific societal needs. In short, the line between for-profit and non-profit entities will be blurred.

Continue reading →