A Note from the Director – Proposal to Eliminate the Charitable Deduction

“I lift up my eyes to the hills – where does my help come from? My help comes from the LORD, the Maker of heaven and earth. He will not let your foot slip – he who watches over you will not slumber; indeed, he who watches over Israel will neither slumber nor sleep. The LORD watches over you – the LORD is your shade at your right hand; the sun will not harm you by day, nor the moon by night. The LORD will keep you from all harm – he will watch over your life; the LORD will watch over your coming and going both now and forevermore.” Psalm 121

Recently President Obama sent his fiscal year 2011 budget to Congress. A traditional, post State of the Union, function of the executive branch. It is from this budget that we learn so much of the agenda of each administration.

For the second year in a row, the Obama administration’s fiscal 2011 budget proposes eliminating the deduction for charitable donations for those Americans earning over $250,000. Obviously this is alarming to churches, ministries, and non-profits across the country.

Congress eliminated this proposal from the 2010 budget, but the Obama administration claims that if enacted in 2011 the projected savings to the US government would be $291 billion over 10 years.

While we definitely appreciate that the US needs to reduce spending and cut out pork, it is important to recognize that the savings non-profits and ministries provide the US government will far exceed the $291 billion projected to be saved through this measure. Also, if this measure were to be enacted, it would could cost non-profits at least $830 billion over the next 10 years, 3 times the savings to the US government. (This is figured conservatively with the limitations placed on the current highest tax bracket at 35%, Over $357,700 annual income.)

Ministries like Lifeline rely on the support of generous donors who give from their time, talents, and treasure. The Lord provides for the work of Lifeline, churches, and other ministries through the generosity of His people. While our compulsion to give should not be based on a tax credit, the tax credit enables us to give more.

Please join us in praying for our nations leaders as they debate and decide on this very important measure, that at least in Lifeline’s case could greatly impact the 143 million orphans at home and around the world. If you will please write your Congressmen, your Senators, and our President and ask them to consider cutting spending, but not on the backs of our nations non-profits.

The purpose of this post, is not to direct negativity to any particular party or to any particular representative of our great nation, but to stir us into prayer and action over this issue. Edmund Burke is quoted as saying, “all that is necessary for the triumph of evil is that good men do nothing.” As men and women called according to the purpose of God, let’s fall to our knees over this issue, but remember, as Psalm 121 states, our hope is not in a tax credit or an earthly government, but in the Lord.

On behalf of the orphans,

Herbie Newell
Executive Director
Lifeline Children’s Services
giving children a hope and a future

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