The Wall Street Journal’s lead story today is on President Obama’s proposed budget and how the new tax applications might affect upper income families.  Specifically, it questions whether there will be an affect on charitable giving.

The tax increases would raise an estimated $318 billion over 10 years by reducing the value of such longstanding deductions as mortgage interest and charitable contributions for people in the highest tax brackets. Households paying income taxes at the 33% and 35% rates can currently claim deductions at those rates. Under the Obama proposal, they could deduct only 28% of the value of those payments.

…

One concern certain to get attention in Congress: whether a change to the deductions formula would discourage charitable giving among the wealthy, or further depress the housing market given that the interest deduction would fall for some.

So, the question is out there: Is the tax deduction that important for major donors?  Or are they generous simply because they want to do good?  Certainly a $35 or $50 donor who makes under $250,000 wouldn’t be hurt, but will this turn into a funding problem for non-profits as major donors pull back even more?

I think it might be a problem as nearly all donors are only part-philanthropist, while the other part has at least some self-interest.  The ratio of one to the other under this new system is unknown.  Only time will tell.

On February 10, the USPS Board of Governors announced new postal rates for 2009 including a two-cent increase in the price of a First-Class Mail stamp to 44 cents. The new prices will go into effect Monday, May 11.

The new 44-cent rate covers the first ounce of first-class mail. The price for each additional ounce will remain unchanged at 17 cents.

The USPS also said customers can purchase Forever Stamps at 42 cents between now and May 11. Forever Stamps were developed to help consumers ease the transition during price changes. Forever Stamps do not have a denomination and will be honored whenever they are used with no need for additional postage for a 1-ounce letter mailing.

For more information, click here: http://www.usps.com/prices/pricechanges.htm

I recently (January 28, 09) listened in on a “Brown Bag Phone Meeting entitled Fundraising in Challenging Economic Times,” a discussion about fundraising in these difficult times. Our own Luke Vander Linden was one of the presenters. I thought it was productive and useful to PBS stations.

However, I just wanted to express a difference in opinion with one point made during the session.

If memory serves me, there was a comment in response to a question, that in effect, said that the best direct mail packages are the cheapest ones and that letters are just letters, and so, when writing to someone (donors) the best letter is one that is most inexpensive to produce. (Read on …)