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Charity Should Begin With Charities

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Posted on Sep 24, 2009

By E.J. Dionne

If the uninsured can’t count on the do-gooders to help them, where else can they turn?

The question arises because certain leaders of the sector of our society devoted to civic endeavors moved this week to block a perfectly reasonable way of raising some money to extend health coverage to those who don’t have it.

At issue is a proposal by a number of senators, including Jay Rockefeller and John Kerry, to put a cap on tax deductions taken by the well-to-do. Their suggestion wouldn’t even unsettle existing deductions, and it is far more limited than a sensible idea along the same lines put forward earlier by President Barack Obama.

With the Bush-era tax cuts set to expire in 2011, the marginal rate on the top income bracket is scheduled to go up from 35 percent to 39.6 percent. This affects only families with taxable incomes of roughly $370,000 a year or more.

To help pay for expanded coverage, the senators are proposing that the itemized deductions taken by those with high incomes be capped where they are now. So beginning in 2011, people in the top bracket who made a charitable contribution would have it offset against taxes by 35 cents on the dollar, not 39.6 cents. People in the next bracket down, $210,000 to $370,000, would still get a bigger deduction than they do now. The plan is estimated to raise about $90 billion over a decade.

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At the beginning of the year, Obama proposed limiting the deduction to 28 cents on the dollar, which would have raised more than $300 billion and solved much of the health care financing problem.

But Obama’s idea was shot down, and now, a group of charitable leaders—including representatives from the Council on Foundations, the American Association of Museums and, shockingly, the American Institute for Cancer Research—wants to kill the new proposal, too.

“With so many Americans relying on the charitable sector,” they huffed in a letter released on Monday, “now is simply not the time to jeopardize the charitable gifts that are so important to its strength.”

There’s precious little evidence that this small tax change would dent charitable giving, and there’s also a problem of logic: When the Bush tax cuts went through, these groups did not complain that charitable donors would be able to deduct only 35 cents on the dollar. If that was so awful, these groups had nearly a decade to say something. They were silent. Why are they now screaming that 39.6 cents is a sacrosanct amount?

Far worse is the signal this sends: If even groups whose very mission is public-spirited can’t take an exceedingly modest risk to extend health coverage, how can we expect anybody else to pay a little more for a moral imperative? In fact, it seems that almost every group is resisting almost every proposal that would pay for health care.

Health reform will fail if it includes a mandate that everyone buy insurance but does not provide subsidies large enough to make coverage affordable for Americans in the middle and lower-middle ranges of income. Yes, costs would be held down with a public option, or at least a trigger to bring an alternative government plan into being in markets that lack real competition. But with or without a public option, decent subsidies are essential.

Subsidies cost money—one reason why it’s unfortunate that the president put an artificial ceiling on the cost of a bill at around $900 billion over 10 years.

Nearly everyone forgets a crucial fact: This money will not be added to the deficit. The bills are designed to be self-financing (unlike, say, the Bush tax cuts). The real cost of doing this right is probably closer to the $1.2 trillion price tag in the bipartisan proposal put forward earlier this year by former Sens. Bob Dole, Tom Daschle and Howard Baker. But whatever number Congress finally agrees on, the subsidies have to be sufficient and they have to be paid for.

This means that liberal interest groups need to be open to revenue ideas that are not their first choice, such as some form of taxation on high-end health plans. It also means that moderates claiming deficit hawk credentials cannot pretend that unpleasant tax increases can be avoided by holding down costs at the expense of the uninsured and underinsured.

If anyone should understand this, it’s the leaders of our charities. Perhaps they will be charitable enough to reconsider their position.

E.J. Dionne’s e-mail address is ejdionne(at)washpost.com.

© 2009, Washington Post Writers Group


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By bogi666, September 27, 2009 at 1:29 pm #

deluded voice of truth, you should stop listening to the voices in your head which make no sense to anyone except you because you think the voices are real and then proceed to write your delusions which displays your break with reality. Your Beck lessons don’t work here, just attacking the messenger because you lack the knowledge and intellectual capacity to address the message which differs from the voices in your head which you think are real. A proverb states “it not the voices I hear that insane it’s the answers that are insane”. Quit attributing your comments to me another indication of your mental instability. You incense yourself with your own deluded comments, attribute them to another for the reason of triggering some personal body chemistry of yours to which you are addicted. Take responsibility for own insanity and incompetence. Run don’t walk to your local Headstart program and get a gripe on your subject predicate english language dynamics.

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By bogi666, September 27, 2009 at 12:10 pm #

dear voice, just what planet are u living. you just continue to use the old neocon tactic of attacking messengers when you know nothing of the message. go back to watching beck.Some charitable trusts may have insurance stocks that they think will drop in value along with jeopardizing some of the large salaries the officers receive.Some of the boards may have insurance executives on them who are opposed to a health care industry rather than just having a health insurance industry.And you may want to run, not walk to your nearest headstart program and get a grip on the subject predicate dynamic of the english language.

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ardee's avatar

By ardee, September 27, 2009 at 12:04 pm #

At least when I make an argument I use FACTS, I don’t just simply assign labels to
people as you and your ilk do.

Bogi’s comment that charities must have been bought off by insurance
companies and that is why they are against this supposed health care reform is
about as ignorant a post as ever.

Why say a word when this imbeciles own words do just fine?

Report this

By proletaritprincess, September 27, 2009 at 10:35 am #
(Unregistered commenter)

voice of truth:
I really don’t get you either.  But you gave yourself away when you implied that government has some role in building strong charactor.  What?  When people are in need only the mean spirited think about building strong charactor.  Your comment actually makes my point.  In your world, only the weak and those who lack charactor and require disclipline are in real need.  Those who have been responsible tax payers and good citizens but have fallen on hard times and fit into that catagory and snd should humble themselves to beg for charity?  nonsense.
In other more civilized countries, it is recognized that anyone can fall on hard times and need help and there is no shame about being on the dole. 
It could even happen to you, truth.

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By voice of truth, September 27, 2009 at 10:24 am #

Again, Ardee, what have I distorted in my posts.  Again, you resort to name
calling.  Bogi’s comment that charities must have been bought off by insurance
companies and that is why they are against this supposed health care reform is
about as ignorant a post as ever.  Again, where am I distorting???

Report this
ardee's avatar

By ardee, September 27, 2009 at 9:51 am #

voice of truth, September 26 at 10:59 am #

Ardee

Please tell me what part of post was “fanciful” and “distorted”.  Seriously.

At least when I make an argument I use FACTS, I don’t just simply assign labels to
people as you and your ilk do.

Hahahaha, what a Maroon, as Bugs Bunny might respond:

“voice of truth, September 25 at 5:54 pm #

Bogi, you are simply one of the most ignorant people whose words I’ve ever had the pleasure of reading.

And the rest of you??  Are you nuts?  “

Are you really as young and foolish as your posts indicate?

Report this

By Jeremy Keith Hammond, September 27, 2009 at 9:42 am #

@Louise, September 25 at 12:29 pm

You say: “Try to find the percentage of dollars raised
that actually reaches those in need. It is near to
impossible.”

Actually, every nonprofit with revenue over a low
threshold is required by law to file IRS Form 990, which
displays this information among others such as the
highest 5 salaries payed to executive officers. Smaller
nonprofits have similar filing requirements. These are
public documents and can often be found online with some
strategic Googling or you can call the nonprofit or IRS
directly to receive a copy.

You say: “It’s actually a very good way to make money,
and be able to offer better than good salaries for the
folks who oversee this particular version of help.”

I’d like to know which nonprofit you work for because I
could make a lot more money working in a regular
business than I could working at my nonprofit. Aside
from the multinational, multimillion dollar charities…
the pay is peanuts.

@proletariatprincess, September 25 at 11:40 am

You say: “We need fewer charities and more social
justice.
Charities rob people of dignity and serve the powerful
so they can profit from giving.”

I partially agree with you. We do need more social
justice - but until we get it (which will be a long
time) we need something to catch all the people that
slip through the cracks. The local food pantry doesn’t
give out food because it’s going to end hunger
permanently. It gives out food until someone can make
systemic change so that people don’t need handouts.
While you work on social justice in Congress, people are
still starving and still homeless. Charities aren’t the
cure - I readily admit that - but they’re a necessary
tourniquet.

As for your second statement (and really the aura of
your entire post) I couldn’t disagree with you more.
While the entire sector has its few lemons, most
charities, particularly medium and larger ones that are
built on reputation… have good reputations for a
reason. Many nonprofits’ actual mission IS to improve
the lives and dignity of people.

Look at the elder group homes that provide a hot meals,
warm beds, good views (lol), caring staff and social
outlets to the elderly who are otherwise abandoned by
their family and whose natural friends have died off, a
frequent condition for octogenarians.

Look at the redcross - when someone’s home burns to the
ground and that person has no one or nothing else - it’s
the redcross that’s there in person to sensitively
discuss their needs, arrange immediate shelter, food and
clothing needs as well as toys and other entertainment
for children. What more could someone without a family
support system ask for in such a horrid scenario?

Speaking of kids, look at all the various children’s
clubs and afterschool programs across the country
providing safe havens, learning opportunities and
physical/social activities for children - children who
would otherwise fall prey to a more hostile world
outside. They’re safe, warm and having fun among their
peers and staff not much older than them who turn into
good role models. How is that not dignified?

All of these are steps up from alternative conditions.
Could it be better? Could our government step in and
provide a more egalitarian and efficient use of
resources and ensure people don’t slip through the
cracks? Yes. And by all means invest your time, energy
and money into it… but god damn it people are
starving, homeless, sick, lonely, suffering RIGHT NOW!

Have a fuckin heart…

Report this

By voice of truth, September 26, 2009 at 10:59 am #

Ardee

Please tell me what part of post was “fanciful” and “distorted”.  Seriously.

At least when I make an argument I use FACTS, I don’t just simply assign labels to
people as you and your ilk do.

VT

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ardee's avatar

By ardee, September 25, 2009 at 10:10 pm #

voice of truth, September 25 at 5:54 pm

Congratulations, you have not only won the award for the most ridiculous and fanciful post ever but that award can now be permanently retired.

You distort, and all at the same time, the utility of charity, its necessity as well as the opinions of the left…Well done, I hope you didnt hurt yourself in this seemingly impossible attempt.

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By taikan, September 25, 2009 at 6:21 pm #

Carving out an exception for charitable contributions so that they result in a lower deduction is not a very good option.  Instead, Congress should restore the tax brackets (adjusted for inflation) to where they were in 1950s, 60s, or 70s, all time periods during which both productivity and the wages earned by the average worker grew at a much faster rate than during the period since the Bush tax cuts went into effect.

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By voice of truth, September 25, 2009 at 5:54 pm #

Bogi, you are simply one of the most ignorant people whose words I’ve ever had the pleasure of reading.

And the rest of you??  Are you nuts?  Charities rob people of dignity??!?!?!?  Please, tell me how getting your sustenance, housing, clothing and ass-wiping from the government builds stronger character?

It is a fact that those who describe themselves as conservative donate a much higher % of their income to charities than do liberals.  Look at the Obamas and the Bidens?  Until Obama become a candidate for president, his tax returns showed less than $1,000 donated to charities against millions in income.  What a hypocrite.

I just don’t get you people.  Your posts clearly make it seem that you are not at all interested in actually helping people, you simply do not want anyone to have more than anyone else.  And the only way to do that is with the police powers of the governement, a charity can’t accomplish that goal.

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By Louise, September 25, 2009 at 12:29 pm #

It’s really no secret that the best way for an organization to avoid taxes is to avoid profit. Ergo the non-profit organization. In the case of charity, they do, actually must do good works, or risk losing their non-profit status.

The three charitable groups the author mentions are not actually charities.

Rather they are organizations representing or servicing various groups within the scope of their particular “charitable” sector, that rely on gifts and donations from philanthropists. And even plain folk who just believe sending in a few dollars every now and again will provide direct help to someone in need.

They function as an Advocacy & Legislation Lobby serving paying members. And they offer the all important “right” connections. They host parties and receptions, Conferences and Conventions, education and training seminars, and the all-important “fund raisers,” to attain and maintain these connections. And to support a huge employee base and facilities to house them, all requiring money that’s not supposed to show a return for the investment.

It’s actually a very good way to make money, and be able to offer better than good salaries for the folks who oversee this particular version of help. Try to find the percentage of dollars raised that actually reaches those in need. It is near to impossible.

So when I read an article like this, the only thing that makes sense is to understand it isn’t about the charities, it’s about a hand-full of very wealthy, greedy so-called philanthropists, who not only have no problem using their connections to bring political pressure, but have no sense of shame. And why should they? They are the special, the better, the boss. How dare some stupid politician suggest they give pennies in any way other than a way of their choosing! 

It’s called being amoral, and many in that very select group are. When one wants to put on the front of generosity for good PR, being rich requires being nice, but that doesn’t necessarily mean the front is for real. The wealthy know when push comes to shove good PR is unimportant. They don’t need it because they have the money.

Charities put up with it because they need the money. And groups like the Council on Foundations put up with it because often as not the folks who run them come from the same base. Which leaves all of us scratching our heads, because we simply can not get a handle on that inner soul that pretends, but never feels true empathy.

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By proletariatprincess, September 25, 2009 at 11:40 am #
(Unregistered commenter)

We need fewer charities and more social justice.
Charities rob people of dignity and serve the powerful so they can profit from giving.

The Right wing always depends on charaties to justify their heartless mean spiritedness. So it has been since the age of feudalism and before. 
Just the other day Eric Cantor told a constituent to apply for charity for her health care.  Scrooge.
Are there no workhouses?  Are there no orphanages? 
Then there are the so called charities that just cover for industry like the pink ribbon breast cancer foundations.  Ha.  That money goes to Big Pharma to find a “cure” instead of helping people or looking for the cause of cancer epidemics.  There is big money in selling new cancer drugs.  Big profit margins to be made from desperate people.  Pharma can name it’s own cost and then pat itself on the back for it’s service to humanity.
I don’t like charities and won’t give them a dime of my meager income.  I will dig deep, however, for social justice causes and progessive public media.

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Purple Girl's avatar

By Purple Girl, September 25, 2009 at 10:41 am #

Seems to me healthcare Reform would help lift the burden off these Charities. Granted not as many dollars may be donated, but the number of people seeking their ‘charity’ would decrease.
“Free Clinics” would see a reduction in those seeking ‘Free’ care. ‘Pregnancy Crisis Centers’ which promote “Pro Life” agendas would not have to scrap for donations to afford those ‘Free’ pregnancy tests.
Instead they could focus on such dire areas as food and shelter,counciling and education for their community and/or congregation.
If the Goal of these Non profit ‘Charities’ is truely to solve the problems of those they serve- shouldn’t their hope (goal) be that one day they become unnecessary?
What this reveals is that These ‘Charities’, and those that run them, are more concerned about their own survival, then those who seek their services.Just because they claim a ‘Non Profit’ status doesn’t mean their Upper echelon is not making big bucks- their salaries are deducted before the ‘excess’ is ‘reinvested’ into the program.

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By Howie Bledsoe, September 25, 2009 at 8:24 am #
(Unregistered commenter)

I intend to die a quick death, hopefully in my sleep, somewhere in my mid-50´s.  If we all do this, our problems will be solved.

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By rob, September 24, 2009 at 2:35 pm #
(Unregistered commenter)

these healthcare numbers dont ad up. medi-care projections where off by 100 billion over 30 yrs. im not worried about healthcare in my 43 yrs i have only had it for about 10 yrs. i have a small health issue right now and im paying out of my pocket, its not much more than if i had insurance. i dont drink or smoke and i am very active. healthcare starts with personal care. healthcare is as expensive as it is because the gov’t is already running better than 40% of it now. we live here in close to the border and there are plenty of canadians seeing are specialists. this is the same gov’t that couldnt get to the convention center during hurricane katrina for a week even though civilians were driving in picking up relatives… this is not rocket science they tend to screw things up

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By bogi666, September 24, 2009 at 1:45 pm #

Seems like the “charitable” institutions have been targeted and subject to being bribed by the health insurance industry.

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By Jeremy Keith Hammond, September 24, 2009 at 8:18 am #

I would have to disagree with the author of this article.
Of the NUMEROUS ways we could finance health-care, why
would you tax charitable contributions?

Both the Center on Budget and Policy Priorities and the Center on Philanthropy at Indiana University (not to
mention the uproar from the entire nonprofit sector and
most of Congress) have estimated that charitable
contributions from high income brackets (the biggest
givers) would drop.

This is a time when social services are being drastically
cut in state budgets - increasing demand and strain on the
nonprofit sector which is already scrambling to compensate
for massive job losses from the poor economy.

There are multitudes of financing options for the health
care plan. I would start by cutting just a sliver off the
military budget - after all we certainly don’t need to have
bases in over half of the world’s nations.

Let’s not forget that the health care plan has the
potential - if allowed by our stagnant congress - to
finance itself.

As for ardee’s criticism of nonprofit’s budgets - I would
suggest he look closer at many of them. While no sector is
completely free from fraud and corruption - anything people
make working in the nonprofit sector is pennies compared to
their corporate counterparts. Sure, many execs -
particularly from large, multi-million/billion dollar
charities - make a lot of money. But you have to understand
that the charity is competing with higher paying for-profit
organizations to fill that administrative role. To get
someone qualified, they HAVE to pay well.

So please, instead of moving money from one sector of human
service to another - let’s come up with something a little
more innovative.

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ardee's avatar

By ardee, September 24, 2009 at 5:39 am #

One way these “charities” might ensure their ability to actually do good is by taking a long hard look at the salaries they pay their top executives…...Charity begins at home.

I do not wish to appear to be overly critical of the good works many do, but many take in millions and disperse, after “expenses” that include multi million dollar salaries, pennies.

I think that the govt is the best conduit for social safety nets after all, and the phrase,“to promote the general welfare” always crossing my mind in discussions of this nature.

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