Last updated July 28, 2020
Charitable nonprofits are created and operated according to federal tax law. Consequently, tax policy changes can have significant implications for the work of nonprofits. The Center advocates on several areas of tax law affecting nonprofits, including:
Nonprofit tax exemption. All 501(c)(3) nonprofits should be fully exempt from federal, state, and local taxes.
Incentives for charitable giving. Federal and state tax laws should encourage individuals and businesses to give generously to support the work of charitable nonprofits.
Sales tax policy. Changes to state sales and use tax laws can have significant implications for the operations and finances of nonprofits.