A Study Unveils the Concern of Nonprofits and Foundations Over the Tax Law
"Many U.S. nonprofits and foundations are concerned about a potential drop-off in individual donations in the wake of the tax legislation passed by Congress late last year," according to a new report from the Center for Effective Philanthropy (CEP).
Among other findings, the report points out how nonprofits are looking to funders to step up — both to help close the potential gap and
to make the case to the broader public about the importance of their work.
"Nonprofit and foundation leaders both suggest that in this moment of uncertainty foundations can provide advice and assistance to support nonprofits’ fundraising and financial sustainability efforts, as well as play an educational role with nonprofits and donors about the effects of the legislation," explains the report.
Addressing this topic, Eddie Torres, Grantmakers in the Arts president and CEO, explains, "Elements of this new tax law are certainly alarming for our non-profit organizations that provide services to our nation’s residents. As we address these concerns, we must also look for solutions."
In response to the legislative changes, Torres notes:
One possible opportunity is our encouraging individual donors to simplify their deductions by pooling their philanthropic funds, giving them to their local community foundation and working with them to articulate their philanthropic priorities in a manner that is comprehensible and transparent to applicants. This could allow donors to continue to support organizations and allows community foundations and organizations to strengthen their relationships.