Proposed federal tax reform a double-edged sword for nonprofit sector

Proposed federal tax reform a double-edged sword for nonprofit sector

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Tim Delaney of the National Council of Nonprofits, points to a broader, mostly overlooked issue — the significant decrease in overall revenues that would result from major tax cuts.

“The consequences are not just to nonprofits, but also to the millions of Americans they serve,” Delaney said. “Less tax revenue will mean a vast reduction in domestic spending, for everything from health and safety-net programs for individuals to transportation infrastructure for everyone. Spending cuts, however, never reduce human need and, in fact, often multiply it.”

Those cuts would force more organizations to turn to private philanthropy to fund programs that would be lost otherwise. But Delaney said all of philanthropy combined simply doesn’t have enough money to fill the growing financial gaps created by politicians who are narrowly focused on tax cuts.

“It’s not the job of philanthropy to subsidize government,” he said.

Source Name: 
Charles Stewart Mott Foundation
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