Nonprofits Respond to Release of Proposed Rules on SALT Workarounds

Nonprofits Respond to Release of Proposed Rules on SALT Workarounds

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On the Treasury Department’s release of proposed rules regarding the so-called SALT workarounds, David L. Thompson, Vice President of Public Policy for the National Council of Nonprofits, said:

“While views vary about the SALT workaround state laws that precipitated this rulemaking, the charitable nonprofit community – including houses of worship – has a significant philosophical concern that must be recognized. Charitable organizations, by design and by law, are independent from government, filling in gaps in serving communities that governments can’t or won’t fill. When governments create ‘nonprofit-like’ organizations, they blur the line between governments and nonprofits, confusing the public and potentially dragging charitable nonprofits into the sphere of cynicism that has become the hallmark of partisan politics today. As fiercely nonpartisan organizations, it is vital that charitable organizations remain, and be recognized as, independent of politicians and governments.

“Much is at stake in the resolution of these proposed regulations. It is apparent that Treasury and the IRS are seeking to invalidate a wide range of state programs that provide tax credits while preserving those that allow tax deductions. We recognize that arguments exist both for and against providing favored tax treatment for such government-created nonprofits. Those arguments should be fully addressed during the public comment period that will be open until mid-October.”


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. Learn more at

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