Don’t Wait for the Government to Repeal the Charitable Tax Deduction; Instead, Repeal it Personally

Don’t panic. This is not the blogosphere equivalent of a chain email warning you that the US government is about to repeal the charitable tax deduction…unless you forward this on to sixteen congresspeople NOW!

Truth is, all signs point toward the charitable tax deduction sticking around for at least the foreseeable future.

But Jan Edmiston at A Church for Starving Artists asks: If the deduction were repealed…

“Would most of us give simply because it’s the right thing to do?”

I received a personal letter this week from a stranger who said that at a funeral in 2010, he greeted me and handed me $20 in cash to add to the memorial for the deceased. He would like a letter “for tax purposes” from me/the church.

Wow.

Wow is right! And Jan’s question is right on, whether the charitable tax deduction is ever formally repealed or not.

Last November I did a post advocating that we give away an increasing percentage of our donations unreceipted and anonymously. I wrote:

Once you set your giving percentage for the year, set an initial percentage of that percentage (1%? 5%? 10%?) to give away anonymously and unreceipted…and then increase that percentage each year. Absorb the tax hit as part of the cost of giving in secret, consoling yourself by noting that charitable giving may not be tax deductible forever the way things are going, and you’re just getting a jump start on the training to be generous when the only reward you’ll get for your donations comes from your Father in Heaven, who sees what is done in the secret places of our hearts.

It’s a practice to which I find myself more and more drawn, and which took on special meaning yesterday in the first “Offering Sunday” at the new .W Evangelical Church congregation we’re planting simultaneously (via videoconference) in Colorado and Korea.

Rather than taking an offering each Sunday, we as a congregation prepare to make our offering once a month, on the last Sunday of each month. A month’s preparation has a way of keeping the offering from being a tip for services rendered (literally).

But what I’m most excited about with regard to our offering is that each member commits to offering a tithe, of which 30 percent is given to the church (with a third going to the church, a third going to our denomination’s regional conference, and a third going to the denomination) and 70 percent is consecrated at the altar…and then immediately received back again by each member, to be disbursed personally by that member as the church’s minister within his or her own sphere of influence.

70 percent of the tithe, in other words, is not tax deductible because it doesn’t go through the church. It’s consecrated at the altar and then given directly by the church member to those to whom the members learn to personally minister. (Training in giving embedded in service is a key part of what the church program is all about, even for the congregation’s children. Giving and serving should be done by the family jointly, after all.)

Lose the tax deduction, free yourself for philanthropy. It’s a trade we all ought to think about making.

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Perfect Participation Project for Donors to Missionaries: The Granny Cloud!

It’s funny.

We developed the idea of the Signature Participation Project for individuals doing ministries overseas–a way of helping them to get their donors to give more than money ‘n’ prayers by beginning to be involved hands-on in overseas ministry without leaving their homes.

Then people involved in ministry in their own communities said, “That’s great. But our ministry is local. There are no exciting projects for our donors to do like what international ministries can do with their donors.”

So we wrote Coach Your Champions both to introduce ministries of all stripes to Transformational Giving…and to give local ministries some creative ideas of how to get donors involved hands-on in ministry.

And then the international ministries said, “That’s great. But our ministry is international. There are no exciting projects for our donors to do like what local ministries can do with their donors.”

One can’t win for losing, you know.

So for missionaries and international ministries, please check out this report of a granny cloud forming above a secular international nonprofit near you.

Lest you think that videoconferencing is either too expensive for your ministry or beyond the technological capacity of your donors, let me note that:

  1. Our ministry is now doing videoconferencing daily to connect our far-flung offices. And our new church plant is using videoconferencing several times a week. The cost for even good videoconferencing software is surprisingly low compared not only to air travel but to telephone.
  2. 15% of Americans age 65 and older have Skyped or done a videoconference. That’s one large granny and grampy cloud.

Why do we Christian nonprofits and missionaries let secular orgs take the tech lead with their donors? We don’t really believe that it’s only the pagan grannies and grandpas that Skype, do we?

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The Truly Transparent Nonprofit is Born

Hildy Gottleib’s work is always all kinds of interesting. We may hail from different neighborhoods of the fundraising universe in terms of our metaphysics and attendant terminology.

But we often end up in surprisingly close proximity in terms of the practices we recommend.

Like maximum, sheer, unadulterated transparency.

I’ve long said that development is something you do with donors, not to them. So I’ve been watching appreciatively as Hildy builds her brand new nonprofit organization totally in public, every seam showing.

It makes for fascinating reading.

Because Creating the Future’s values are rooted in The Pollyanna Principles, we know that authentic engagement requires authentic transparency. We have therefore chosen to make all this organization’s major decisions by transparently engaging discussion.

We are building our board openly, on line at Hildy’s blog (you’ll find some of that discussion here Click ).

We are openly sharing every aspect of our fundraising – sharing our strategy, our target audiences, our progress (beginning here Click ).

We have posted our short-term interim budget as well as a video sharing our plans and goals (that’s here Click ).

Transparent engagement is being built into Creating the Future’s bylaws (we talk about that here Click ).

As I say, the terminology and founding principles Hildy lays out in her book won’t ever be mistaken for The Whole Life Offering Ten, but our practices are certainly complimentary.

I’d love to beat her to the punch with an online Bylaws Wiki. In the mean time, I hope you’ll join me in adding her blog to your RSS feed so we can keep up on the transparent cutting edge of nonprofitdom that’s in full view at Hildy’s new org, Creating the Future.

Best of luck, Hildy. We’ll be watching.

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