As nonprofits, we want to ensure that, like the budget, our tax code makes strong investments in our communities.
To build a prosperous future, we need a tax code the strengthens essential programs, values the partnership between nonprofits and government, and helps nonprofits to achieve their missions through the promise of non partisanship.
This week Congress took the next step in getting a budget resolution passed, which would allow them to pursue a tax reform bill that calls for massive spending cuts to essential programs that invest in communities around the country.
The framework for reforming our tax code released last week gives us great concern. Current tax reform proposals could put essential programs at risk, significantly decrease charitable giving, and threaten nonpartisan protections that make our sector trusted by communities across the country.
There is a lot of evidence that shows that the amount people give is directly influenced by the economic incentives created in the tax code. When the value of the incentive is reduced, so are gifts to nonprofit organizations. One of those very much has to do with nonprofits – with the charitable deduction, which this year celebrates 100 years of tax code status.