Bill would preserve property tax exemptions for nonprofits | Notes on Nonprofits

Sabeen Perwaiz
Notes on Nonprofits
Sabeen Perwaiz

The Florida legislative session is underway and we invited Sabeen Perwaiz, President and CEO of the Florida Nonprofit Alliance (FNA), to share the following information of interest to nonprofits. 

In 2020, seven nonprofits in Sarasota County received a notice of intent to deny their nonprofit status from the property appraiser, despite no change in their operations.

FNA believes this is a misinterpretation and misapplication of Florida Statute #196 which allows nonprofits to receive a property tax exemption for incidental use of their property, as long as the proceeds benefit the nonprofit mission.

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Removal of this incidental use would primarily impact arts and cultural organizations who generate revenue from use of their grounds, gardens, and facilities.  

Floridians rely extensively on charitable nonprofits for important services and supports. Charitable nonprofits play a significant role in our state’s economy by employing 8% of the state’s workforce. Nonprofits cherish their tax exemptions because they allow every dollar granted, donated, or earned to be leveraged immediately to address clear and present challenges.

However, nonprofits – like the people we serve throughout the state – still face significant challenges. As they continue to provide relief during a pandemic, they are now dealing with the added challenge of worrying about their property tax exemption. 

Florida Nonprofit Alliance thanks Senator Gruters and Representative Borrero for taking the lead on SB 1214/HB 889 and for helping ensure nonprofits continue to have the resources to fulfill their missions.

SB 1214/HB 889 will ensure that Florida’s long-standing public policy of encouraging philanthropy through private sector donations to scientific, charitable, religious, and literary nonprofit organizations will not be quashed by improper interpretation of Florida statutes.  

As a result of COVID-19, nonprofits have been under-resourced and working on overdrive to help Floridians across the state. FNA’s COVID-19 Effects Report showed that 71% of nonprofits have had a decrease in unrestricted revenue in 2020. Almost 50% of the organizations that had reserve funds at the beginning of the year have tapped into them, leaving them more financially fragile than before. 

Nonprofits do not need the added burden of worrying about their property tax exemption. SB 1214/HB 889 preserves and shields Florida’s longstanding existing law which has always protected and guarded nonprofit tax exemptions.

Sound tax policies that support nonprofits are one of the most important ways to help nonprofits secure the resources necessary to effectively serve the public good and address community needs. FNA is committed to maintaining nonprofit sector exemptions from paying state and local property, sales, and use taxes and from collecting sales and use taxes. 

Charitable nonprofit organizations are dedicated to the public good; their work improves lives, strengthens communities and the economy, and lightens the burdens of government, taxpayers, and society as a whole. Consistent tax policies at the federal, state, and local levels are critical to the success of Florida’s 94,000 charitable nonprofits in pioneering and implementing solutions to community problems and aspirations. 

The Florida Nonprofit Alliance serves the state’s 94,000 nonprofits, and nearly 630,000 nonprofit employees, as the state’s nonprofit state association. Our mission is to inform, promote and strengthen Florida’s nonprofit sector. 

Sabeen Perwaiz is President and CEO of the Florida Nonprofit Alliance and serves on the board of the National Council of Nonprofits. Notes on Nonprofits is produced by Alyce Lee Stansbury, CFRE and Kelly Otte, MPA. Join us for a conversation with Sabeen on Facebook Tuesday at Noon and email us at notesonnonprofits@gmail.com. 

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