Tax Bill Could Hit Charities’ Bottom Line

Washington, D.C., December 15, 2017 – Following the release today of Congress’s tax overhaul plan, Alliance for Justice Bolder Advocacy program Director Abby Levine released the following statement:

“We are pleased to see that this proposed tax legislation does not include the ill-constructed measure to repeal the Johnson Amendment that was included in the original House version. The language in the House bill that would have opened new avenues to political activity for 501(c)(3)s, including churches, was poorly and confusingly drafted and would have vastly complicated the tax landscape. At the same time, many 501(c)(3) nonprofits may feel the effects of this bill on their bottom line. The bill would raise the standard deductions for taxpayers, thus discouraging many of them from itemizing deductions on their returns. If you don’t itemize, you can’t deduct charitable contributions. Since many people look at that deduction as a strong incentive to donate to charity, they might not make those donations if it’s no longer in their interest to itemize.”

Some earlier analyses projected that the increase in the standard deduction could reduce charitable giving by $16-$24 billion each year.
Bolder Advocacy’s experts will continue to guide nonprofits on how to stay compliant with applicable tax law as the final tax legislation takes shape. For more information on how nonprofits can legally speak out about the tax bill, read Bolder Advocacy’s publication Being a Player.