Industry Commentary From Martignetti Planned Giving Advisors: Will Non-Profits Get Hurt by President Obama's Proposal to Lower Charitable Deductions for the Wealthy? Not Necessarily, Says Planned Giving Expert -- Because the Rich Don't Give the Most to Charities

NEW YORK, NY--(Marketwire - April 1, 2009) - Renewed media attention on President Obama's proposal to limit federal tax breaks for charitable donations for wealthy individuals has focused on high net worth giving, but it ignores the fact that the majority of charitable giving in the U.S. comes from middle-income donors. Will Obama's proposal change that fact? Not at all, says Tony Martignetti, Esq., Managing Director of Martignetti Planned Giving Advisors, LLC, a New York-based consultancy group that advises non-profits.

The controversial proposal has raised widespread concerns in the non-profit community as organizations from social service agencies to hospitals to religious groups face almost unprecedented difficulties in fundraising during the current economic crisis. Martignetti argues that many non-profits are overreacting to this proposal and its potential impact on their donors, whether wealthy or not. He points out that it's merely a proposal and might not become law. But, assuming it does:

--  It isn't effective until 2011.  Non-profits have time to prepare
    themselves and their donors by retuning their fundraising campaigns.
    
--  Donors can still make gifts in 2009 and 2010 that are deductible up to
    their highest tax rate.
    
--  It only applies to the wealthy at the highest income tax rates.
    
--  The vast majority of charitable gifts comes from people with lower
    incomes who aren't taxed at the highest rates (63% in 2004, Giving USA
    2007).
    
--  And the wealthy give only about one-third of the charitable dollars
    (versus number of gifts) in the U.S. (30.5% in 2004, Giving USA 2007).
    
--  Plus, tax considerations are not the primary motivation for charitable
    giving (33% cited tax considerations in U.S. Trust Survey of Affluent
    Americans, 4/24/07).
    
--  The vast majority of donors rank "help others less fortunate/it's
    right to do/set an example" as their top 3 motivations for giving (ranked 1-
    3, 81%, 75%, 22%, (WSJ Online/Harris Interactive Poll, November 2005).
    

"Even in these tough times, middle-income donors can accomplish their giving goals -- and help themselves through the recession -- with advance planning and understanding of the tax laws governing deferred giving," says Martignetti. "This is a scary time for many non-profits and the people who benefit from them, but it's important to recognize that the large majority of charitable gifts come from people of modest means, in good markets and bad. That's not going to change."

About Martignetti Planned Giving Advisors

Based in New York, Martignetti Planned Giving Advisors, LLC is a planned giving consultancy that works with a wide range of educational, cultural, social service, religious and healthcare institutions to create donor opportunities for middle-income investors.

For more information about Martignetti Planned Giving Advisors, go to www.mpgadv.com

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