Washington, D.C. - The Senate voted today to pass the “One Big Beautiful Bill Act.” The bill now heads to the House of Representatives before it goes to the President’s desk for his signature and enactment.
“At a time when nonprofit organizations face significant financial challenges, this tax bill falls far short of meeting the growing needs of the nonprofit sector to fill gaps unmet by government and the private sector,” stated Diane Yentel, President and CEO of the National Council of Nonprofits. “A provision included in the tax bill to create a universal tax deduction for charitable giving by taxpayers who do not itemize is a welcome development. Unfortunately, this positive provision cannot outweigh the many more negative policies in the bill that will ultimately harm the millions of people in America who rely on their local nonprofit organizations for essential services.
"While the final bill includes both helpful and harmful provisions, it overall reduces resources available to nonprofit organizations, negatively impacting their ability to provide essential services to their local communities. The final bill creates a new universal charitable deduction that is estimated to generate $74 billion over 10 years for nonprofit organizations. On the other hand, the bill includes several provisions that disincentivize charitable giving by individuals and corporations, which are estimated to reduce resources for nonprofit organizations and their communities by at least $81 billion over 10 years. The bill also harms millions of people by taking away their access to healthcare and food assistance, putting greater pressure on nonprofit organizations to help meet these needs.
"From small towns to big cities, in every congressional district and state, nonprofit organizations partner with government at all levels to meet essential needs that neither the private sector nor government alone can fully address. Nonprofits show up in times of crisis, providing disaster relief, crisis support, and safety from danger, and meet everyday needs from providing childcare and eldercare, job training, or essential food and shelter.
"Because the tax bill may result in fewer resources for nonprofit organizations, these vital institutions may be forced to cut back on services or serve fewer people. This harm is compounded by other attempts to reduce or eliminate funding to nonprofit organizations as the result of arbitrary and unlawful cuts of congressionally-approved spending and reckless federal funding freezes by the Trump administration."
###
Communities thrive when nonprofits succeed. For more than 30 years, the National Council of Nonprofits has mobilized the largest network of nonprofits in the United States to achieve transformative results. We champion, connect, and inform nonprofits across the country. Join our collective efforts to ensure a connected and powerful nonprofit community equipped to champion the public good. Learn more at www.councilofnonprofits.org.