You are here

Tax Bill Not Good for Nonprofits, But Not as Bad As It Might Have Been

Tax Bill Not Good for Nonprofits, But Not as Bad As It Might Have Been

Tax Bill Not Good for Nonprofits, But Not as Bad As It Might Have Been

Johnson Amendment remains to prevent electioneering, incentives for charitable giving eliminated for most taxpayers

The “Tax Cuts and Jobs Act” ultimately passed by Republicans in Congress and signed by President Trump is not good for most nonprofit organizations, but is not as bad as it might have been. 

It eliminates tax incentives for charitable contributions for all but about 5% of U.S. taxpayers who will continue to itemize deductions, a number significantly less than the 30% of taxpayers who itemize currently.  The National Council of Nonprofits has argued that this provision will reduce charitable contributions by about $13 billion a year.  

lock The full text of this article is available to paid subscribers only. Login or subscribe to read more

 

Sign-up for our weekly Q&A; get a free report on electioneering