The Trump administration's tax policies, particularly the planned renewal of $4 trillion tax cuts and the repeal of the Johnson Amendment, pose significant threats to nonprofits. The 2017 Tax Cuts and Jobs Act has already led to decreased charitable giving by raising the standard deduction, making itemized deductions less appealing. Additionally, repealing the Johnson Amendment could politicize nonprofits, harming their reputation for political neutrality. Nonprofit leaders emphasize the need for advocacy and storytelling to highlight the sector's importance during this challenging period.
Amid a threatened freezing of all federal grants to nonprofits by the Trump administration, a less conspicuous but no less consequential fight is looming-over tax policies that could weaken nonprofits if not undermine their very foundations.
The tax policy led to a significant drop in charitable giving by reducing the value of charitable tax deductions and increasing the standard deduction, which made people less likely to claim itemized deductions for donations.
Countering these threats will require nonprofits and their supporters to effectively make their case to elected officials and the general public, nonprofit leaders said at a recent webinar hosted by the National Council of Nonprofits.
There's a lot of work ahead of all of us. How we do that is by telling stories, bringing in that data, and really making the connections with our local representatives about why this sector is so important.
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