National Council of Nonprofits Applauds Bipartisan Letter Calling for Delay of New Taxes on Tax-Exempt Organizations

National Council of Nonprofits Applauds Bipartisan Letter Calling for Delay of New Taxes on Tax-Exempt Organizations

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Washington, DC – In response to a letter sent by Senators Chris Coons (D-DE) and James Lankford (R-OK) to Treasury Secretary Mnuchin, calling for a delay in the implementation of two provisions of the 2017 tax law imposing new taxes on nonprofit organizations, National Council of Nonprofits Vice President of Public Policy David L. Thompson released the following statement: 

“We applaud this letter from Senators Coons and Lankford calling for delay in the implementation of two new taxes on tax-exempt organizations. The Senators demonstrate what happens when partisanship and politics are set aside in favor of common sense and the common good. Every dollar taken from nonprofit entities as a tax is a dollar diverted from missions of serving individuals and communities throughout the country. The two nonsensical provisions of the tax law – one imposing income taxes on expenses nonprofits incur for providing benefits to employees, and the other using undefined and unclear terms – are creating huge new burdens on already overstretched nonprofits. Without clear guidance from Treasury, tens of thousands of nonprofits, houses of worship, and foundations have been required to make estimated quarterly tax payments on uncertain liabilities and/or are accumulating late fees on liabilities they can’t quantify. While we still hope both provisions will be repealed entirely, this reasonable requested action from Senators on both sides of the aisle would provide immediate relief for nonprofits and allow them to dedicate every minute and every dollar to helping their communities. We commend Senators Coons and Lankford for joining together in the interests of their constituents served by charitable nonprofits.”

The letter from Senators Coons and Lankford addresses two of the issues with the tax law that was included in a letter the National Council of Nonprofits sent earlier this week to the incoming chairs of the congressional tax committees, Senator Grassley (R-IA) and Representative Neal (D-MA), and a letter sent earlier this summer to the Treasury Secretary and Acting IRS Commissioner.


About the National Council of Nonprofits

The National Council of Nonprofits (Council of Nonprofits) is a trusted resource and proven advocate for America’s charitable nonprofits. Connecting the policy dots across all levels and branches of governments, the Council of Nonprofits keeps nonprofits informed and empowered to create a positive public policy environment that best supports nonprofits in advancing their missions. Working with and through the nation’s largest network of nonprofits – with 25,000-plus organizational members - we identify emerging trends, share proven practices, and promote solutions that benefit charitable nonprofits and the communities they serve.

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