Record Journal: Local nonprofits worried about tax reform bill

Local Nonprofits Worried About Tax Reform Bill

By Mary Ellen Godin | November 29, 2017

Local nonprofits are calling on Congress to reject aspects of the proposed tax reform bill that address changes in charitable giving deductions, and non-profit status, saying they hurt their ability to operate at a time when many are losing state and federal funding.

The Senate is expected to vote on the tax reform bill Thursday.

The bill, as written, would change long-time tax policies that have helped support charitable nonprofits through tax incentives. Local and national non-profits fear the changes will lead to decreased revenues.

Although the bills retain existing deductions for charitable donations, both House and Senate versions make changes to the standard deductions that would drastically reduce the number of people who will itemize.

The House legislation includes language to nullify the Johnson Amendment, that for 60 plus years has protected nonprofits with 501-C3 tax status from demands by candidates for public office and their operatives for endorsements, contributions, and other support.

The nonprofits believe, and a congressional agency confirms, that the change would result in billions of dollars of dark money being diverted to newly political charitable organizations because the donors could now receive a charitable tax deduction, Casa said.

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