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To pay for the tax cuts for the extremely wealthy, including our president, the government has to cut down on funding for programs and services that benefit people. We nonprofits, of course, provide many of these programs and services, so it’s going to be rough for us and for the people we serve. But if that’s not frustrating enough, there are three more things we need to worry about:
- The standard deduction is proposed to be doubled: this means fewer people will be motivated to itemize deductions, which likely means less money donated to nonprofits.
- The Estate Tax may be repealed: This is also called “The Death Tax” and it affects large inheritances. Its repeal will likely greatly decrease giving to nonprofits.
- Unrelated Business Income Tax (UBIT) may be expanded:
Proposed changes to qualified sponsorship payments could change how charitable organizations fund programs like homeless or natural disaster one-stop service centers. Expanding [UBIT] would require charities to pay taxes on sponsorships supporting these programs, even though they are mission-related.
Read the full article on the new tax reform bill by Vu Le at Nonprofit AF