The so-called “fiscal cliff” that’s looming over the United States will significantly impact nonprofits and the work they do if not addressed by Congress before year’s end, the cliff referring to the combination of tax increases and budget cuts hitting the country concurrently on January 1.
Legislators are also talking about removing some of the benefits to charities in the tax code. One example: eliminating or capping the charitable deduction.
So for many nonprofits, these spending cuts and less disposable income really means standing at the edge of a gravesite. And in many cases, people live or die by some of the services nonprofits provide.
Consequently, demand for the social safety net services that nonprofits provide will rise even higher than the sustained, elevated level it’s been at since the recession.