Taxing nonprofits is a lose-lose situation

Taxing nonprofits is a lose-lose situation

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On Friday, House Bill 569 will be heard before the House Ways and Means Committee and, if passed, will result in a loss in revenue for the state, a loss in revenue for charitable organizations, and, most importantly, a loss for people and communities.

Sponsored by Rep. David Hess of Hooksett, HB 569 calls for mandating that nonprofit charitable organizations with revenue exceeding $10 million be taxed under the Business Enterprise Tax.

If enacted, the network of community health centers, mental health centers, disability services programs, nonprofit nursing homes, affordable housing groups and more would take a deep hit to their revenue, such a hit that services would be impacted.

This bill puts in motion an illogical sequence of events that leads to one question: Why do this?

If enacted, nonprofits such as Easter Seals, Goodwill, Gateways Community Services, Nashua’s Harbor Homes and others who serve our most vulnerable families will need to come up with revenue to pay this hefty tax. They will need to either curb services or raise more money each year to pay this tax.

None of these organizations are going to be open to curbing services because they are looking at an ever-increasing client list of families living in poverty or challenged by illness, many of whom are working but unable to make ends meet.

Source Name: 
Concord Monitor

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