Last updated January 22, 2021
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.
Other Federal Policy
- Nonprofit nonpartisanship and advocacy.
- Oppose all efforts to repeal or weaken the Johnson Amendment, which protects nonprofits from demands for endorsements of candidates for public office and the diversion of charitable assets to support partisan campaigns.
- Support tax law changes that protect and expand the ability of nonprofits to lobby.
- Disaster tax relief.
- Support provisions in federal disaster tax relief legislation that encourage donations to nonprofits responding to, or recovering from, disasters, thatfacilitate automatic extension of federal tax filing deadlines for nonprofits affected by disasters, and that treat nonprofits equitably with for-profit employers in temporary job-retention tax credits during and after disasters.