So if the deduction is limited or eliminated?
With no deduction, itemized giving would drop by 25 to 36 percent, it’s estimated. Many nonprofits rely heavily on charitable donations. Nonprofits continue to struggle to raise funds, and we’re also seeing less government spending.
Aren’t there other revenue streams to turn to?
By diversifying revenue sources, many nonprofits are able to support their work by competing for government grants and contracts, receiving payments for public services provided, or earning interest on their investments.
Given budget woes, how will charities change over time?
They’ll become even more important to society. U.S. policymakers must know that their decisions about nonprofits not only impact the ability of charities to serve communities, but can affect jobs in their states and districts.
In tax reform, should charities get a ‘special pass’?
I disagree that preserving a tax provision so that charities can continue to serve is somehow giving them ‘a pass.’ Charities must continue to improve the lives of families and communities. This isn’t about amassing personal wealth.
What is the impact of the charitable tax deduction on nonprofits’ ability to operate?
Significant. Tax policy makes bigger gifts – and more of them – possible. It influences when donations are made. Donations spike at year’s end. More than 20 percent of annual online giving occurs Dec. 30 and 31.