Obama Plan Would Reduce Charitable Deduction for Some Wealthy Donors

By paying the alternative minimum tax rate of 28 percent, those wealthy taxpayers are already restricted to the same percentage on their charitable deductions, Mr. Sharpe said. “A lot of the rich are already used to the 28-percent deduction,” which means the Obama proposal would not result in any change for them.

Impact on Large Institutions
Bruce Flessner, a fund-raising consultant at Bentz Whaley Flessner, in Minneapolis, says the plan would likely have little impact on organizations that have a broad base of donors. But large institutions — particularly colleges and universities and academic medical centers — could be particularly hard hit if the plan moves forward.