Local nonprofits worried about tax reform bill

Local nonprofits worried about tax reform bill

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With the tax benefit of charitable giving no longer available to 95 percent of taxpayers, nonprofits in Connecticut and across the country believe that private donations will plummet and their work in communities will suffer, said CT Community Nonprofit Alliance President  Gian-Carl Casa.


The House legislation includes language to nullify the Johnson Amendment, that for 60 plus years has protected nonprofits with 501-C3 tax status from demands by candidates for public office and their operatives for endorsements, contributions, and other support.

The nonprofits believe, and a congressional agency confirms, that the change would result in billions of dollars of dark money being diverted to newly political charitable organizations because the donors could now receive a charitable tax deduction, Casa said.

“The impact of these proposed changes, coupled with overall reductions in state and federal funding that will likely result from adding $1.5 trillion to the federal deficit, would devastate nonprofits,” Casa said.

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