The Obama Administration has once again thumbed its nose at the nonprofit sector with the latest proposal to limit deductions on charity. Unfortunately the debate over the revised deduction rates has focused primarily on the affect on the wealthy.
The real irony here is that under Obama’s proposal the funds being captured via the reduced detectability would go to benefit programs that are in direct competition with the nonprofit sector.
This raises the question, does Obama really know what the nonprofit sector does or how it benefits the greater good? The three sectors provide one another with a series of checks and balances. Increasing the responsibility of government to provide services currently under the purview of the nonprofit sector would be detrimental to the balance of power between private, public, and nonprofit sectors.