Analysis Shows Negative Effects of Tax Reform Bills for the Work of North Carolina’s Nonprofits

FOR IMMEDIATE RELEASE
November 17, 2017

CONTACT: David Heinen, Vice President for Public Policy and Advocacy, 919-790-1555 x.111, dheinen@ncnonprofits.org

 

RALEIGH – A new analysis of the Tax Cuts and Jobs Act indicates that several provisions of the congressional tax reform plans would make it harder for charitable nonprofits throughout North Carolina to provide critical services in their communities.

The analysis from the North Carolina Center for Nonprofits highlights the key nonprofit provisions in the tax reform bills that were approved yesterday by the full U.S. House of Representatives and the U.S. Senate Finance Committee. Among the concerns highlighted are:

  1. The changes to the individual income tax structure (House and Senate bills) would reduce charitable giving by between $12 billion and $20 billion every year;
  2. The potential to inject partisan politics into the work of 501(c)(3) organizations (House bill) would damage the public’s trust in churches, nonprofits, and foundations;
  3. The elimination of a key financing option for private nonprofits (House bill) would make it harder for many nonprofits to expand their operations; and
  4. The imposition of new taxes on some tax-exempt organizations to pay for tax cuts (House and Senate bills) would take resources away from nonprofits’ work in communities across the state.

These and other challenges are outlined in the Center’s comparison of nonprofit provisions in the House and Senate tax plans.

“The tax reform proposals, as currently written in both the House and Senate, would be devastating for nonprofits throughout North Carolina and to the communities they serve,” said David Heinen, Vice President for Public Policy and Advocacy at the North Carolina Center for Nonprofits. “Both proposals would lead to a sharp reduction in charitable giving because only about five percent of North Carolinians would be eligible for the charitable deduction. Furthermore, the weakening of the Johnson Amendment in the House bill could destroy the public’s trust in nonprofits’ work if 501(c)(3) nonprofits are allowed to become known as Democratic charities and Republican charities rather than the nonpartisan problem solvers that they are today.”

Contact the North Carolina Center for Nonprofits for additional local perspective on how the tax bills will affect North Carolina’s nonprofits and the people they serve in communities across the state.


Founded in 1990, the North Carolina Center for Nonprofits works to enrich North Carolina's communities and economy through a strong nonprofit sector and nonprofit voice. It serves as an information center on effective practices in nonprofit organizations, a statewide network for nonprofit board and staff members, and an advocate for the nonprofit sector as a whole. It is the leading voice for 501(c)(3) nonprofit organizations across the state. The Center’s 1,400+ Member nonprofits range from large universities to small grassroots organizations. They work in every field, from the arts and education to science and economic development.

 

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