Nonprofits Under Threat: What’s in the House Tax Bill and How You Can Help

After 16 hours of debate, the House Ways and Means Committee voted this morning to approve draft tax legislation, which is the core of a major tax reconciliation package that Republicans hope to enact by summer.

The tax bill includes several harmful provisions opposed by NCN that would, if enacted, threaten the entire nonprofit sector. The bill grants unprecedented authority to the executive branch to revoke nonprofit tax-exempt status from organizations without full evidence or due process, and it increases taxes on foundations and other nonprofits.

The bill also includes a provision supported by NCN to incentivize charitable giving by creating a non-itemizer deduction. For more information, read NCN’s full analysis of the tax bill and its impact on charitable nonprofits.

The bill now heads to the House floor for a vote as soon as the week of May 19. After passage in the House, the bill will go to the Senate for consideration. Congressional leaders set a goal of July 4 for final passage of the tax bill.

Nonprofit organizations should contact their Republican members of Congress to urge them to protect the nonprofit sector in tax reconciliation.  

Please urge your Republican Representatives and Senators to:

1. OPPOSE granting unprecedented authority to the Executive Branch to revoke nonprofit status from organizations without due process. This provision allows Administrations to target charitable nonprofits based on ideological grounds. See NCN’s one-pager on why Congress should protect nonprofits from Executive Branch overreach.

2. OPPOSE new or expanded taxes on nonprofit organizations, including private foundations. These proposals divert scarce resources away from essential services, undermine the ability of charitable nonprofit organizations to meet needs in their communities, and put greater strain on government. See NCN’s one-pager on protecting nonprofits in tax reconciliation for more information.

3. SUPPORT and EXPAND tax incentives for charitable giving. Congress should include in the tax reconciliation bill the Charitable Act, introduced by Sen. Lankford (R-OK), Sen. Coons (D-DE), Rep. Moore (R-UT), and Rep. Pappas (D-NH) to create a non-itemizer tax incentive for charitable donations to nonprofit organizations. See NCN’s one-pager on the Charitable Act and factsheet on the nonprofit sector for more information.

Thank you for your advocacy.

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