As if the sheer loss of their donor’s wealth weren’t enough concern for non-profit groups, here’s a good explanation of why 501(c)(3)’s, including religious charities, are worried about new limitations on charitable donation tax deductions.

Sheldon Steinbach, a DC-lawyer who represents colleges and universities says the proposal could have drastic consequences for many groups:

“Any disincentive to charitable giving, especially in the current economic climate, will have an impact far beyond the black letter law,” Mr. Steinbach says. “It will have an exponentially negative impact.” …

Michael W. Peregrine, a lawyer in Chicago who advises nonprofit groups, says charities are now facing a “triple play” that could cut into their donations — the bad economy, the proposed charitable-deduction limits, and proposals by President Obama to end tax cuts for wealthy people that were introduced by President Bush.