How new tax plan could impact local nonprofit organizations

How new tax plan could impact local nonprofit organizations

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But leaders of local nonprofit organizations fear it could bring less money to their cause. Kentucky Nonprofit Network Executive Director Danielle Clore says the doubling will mean fewer people will itemize.

Put simply, that means fewer people will write off their charitable giving. Clore cites a potential loss of $13 billion in charitable gifts and 220,000 nonprofit organization jobs as a result. While she says studies indicate donors say the deduction doesn’t matter, she says the deduction prompts people to give larger and more frequent donations.


Another issue at stake, according to Clore, is the weakening of the Johnson Amendment. The House bill initially called for changes. The Senate bill did not. What’s still unclear is if the compromise between House and Senate leaders will include any shift in policy.

The Johnson Amendment prohibits churches and nonprofit groups from endorsing politicians or political parties. Clore fears weakening it could lead to Republican or Democrat sponsored organizations. One scenario she shared is that a if a donor disagrees with an organization or organization board member’s view, they could pull funding.

While some see that as religious freedom issue for churches, Clore is urging her nonprofit members to reach out in opposition to their lawmakers.

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