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On Jan. 1, 2013, Congress enacted the American Taxpayer Relief Act of 2012 (ATRA). While this legislation will have broad impact on the nation as a whole, it promises to impact philanthropy in a number of ways.
Charitable Deduction Remains Intact
Throughout 2012, Congress made a number of proposals to limit the amount or value of charitable deductions. Some suggested a cap on the amount of deductions that could be claimed, regardless of one’s tax bracket. That led to fears that mortgage interest and other relatively fixed deductions would crowd out charitable gifts and result in the effective elimination of the charitable deduction for many taxpayers.
The Obama administration and others proposed limiting the value of itemized deductions t...
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