Charity Inc.: National concerns

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Two weeks ago, my staff and I visited with the Oklahoma delegation in Washington, D.C.

The Oklahoma Center for Nonprofits, along with the National Council of Nonprofits and state association leaders from around the country, continue to have concerns about three significant issues that will affect the charitable sector. Nonpartisanship requirements for nonprofits as determined by the Johnson Amendment, which bars nonprofit organizations and churches from interfering with elections by endorsing candidates, are one of those hot-button issues.

The center continues to believe that the Johnson Amendment protects our sector from unwanted partisan candidate interference so that we may maintain neutrality in our missions and programs.

However, two other issues will have significant effects on the sector should tax reform and budgeting measures pass Congress and be signed into law. The first is maintaining the charitable giving incentives for individuals to donate to charity. Currently, those individuals who itemize on their tax returns may receive a tax deduction for their charitable gifts.

Language currently afloat regarding tax reform includes doubling the standard deduction for individuals to simplify their returns. This could reduce the rate of the number of families who itemize from 30 percent to just 5 percent, and this could disincentivize giving.

Another proposal that was rumored during the elections was to cap charitable deductions at $100,000 for individuals. That would also hurt those large individual gifts for charity, transformative gifts that assist nonprofits with major campaigns or capital needs.

One solution that could help all Americans give and give more is the universal charitable deduction, or non-itemizer deduction. This would allow everyone who gives – regardless if they itemize or not – an opportunity to deduct their charitable gifts.

The other hot-button issue we discussed was the federal budget and domestic spending. We reiterated to our delegation the concerns we had about massive cuts to social programs. We also let our delegation know that nonprofits and churches would not be able to fill the void should some of the proposed cuts be implemented.

Obviously, we will continue to monitor legislation at both the federal and state levels that could affect the charitable sector. We hope that policymakers will see the benefits of working with nonprofits to create effective, efficient ways to serve all Oklahomans and Americans.

Marnie Taylor is president and CEO of the Oklahoma Center for Nonprofits. She can be reached at (405) 463-6886, ext. 201, or [email protected].