Charities Skeptical About Obama's Proposed Tax Change

Charitable groups continue to warn that reducing the charitable tax deduction, as President Obama proposes, would hurt organizations already struggling to drum up funding in a recession.

Charity groups are still jittery over a proposed tax change they say could cause wealthy donors to give less, despite assurances from President Obama this week that donations are unlikely to go down because of a reduction in the tax deduction for charitable contributions.

While Obama argues that his administration is trying to make sure low-income donors enjoy the same tax benefits for their giving as high-income donors, charities and the organizations that represent them say they are concerned they could end up paying the price for a more equitable tax code.

"To put any block between the donor and the charity at this time, I think, is not helpful," said Lisa Hillman, board chairwoman for the Association for Healthcare Philanthropy.

Obama told reporters during his prime-time press conference Tuesday that charities are wrong to assume the change will discourage donations.

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