What the fiscal cliff means to nonprofits and their beneficiaries
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.
This entry was posted in Fundraising, Philanthropy by Grant Montgomery.
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On the subject of reducing or eliminating the deduction for charitable donations, Michelle Singletary writes in The Washington Post:
Would my husband and I give less if we didn’t have the tax deduction? I’m confident we wouldn’t. We give because we believe it’s the right thing to do for folks who are fortunate enough to have money to give. Having the tax deduction is a bonus, but one that has never driven us to give more or less.
I’m actually a bit turned off when a charity tries to persuade us to give by overly emphasizing the standard phrase, “Your donation is tax deductible.”
According to a survey by Dunham+Company, a consulting firm for charitable organizations, 33 percent of donors said they would reduce their giving if the charitable deduction didn’t exist. The figure climbed among key giving groups, with 40 percent of donors ages 40 to 59 saying they would reduce their giving.
I find that statistic shameful. You should give with no expectation of a reward if it’s truly a selfless act.