The massive budget package being pushed by President Donald Trump and passed Tuesday by the US Senate is largely bad news for nonprofits, say sector leaders.
Nonprofit advocates including the National Council of Nonprofits, the Council on Foundations, Independent Sector, the United Philanthropy Forum, and statewide nonprofit associations across the United States are calling on not just the sector but members of the public at large—who overwhelmingly support nonprofits—to call their lawmakers and urge them to vote “no” on the current bill.
“The bill also harms millions of people by taking away their access to healthcare and food assistance, putting greater pressure on nonprofit organizations.”
Despite some good news in the form of a proposed universal tax deduction for charitable giving for non-itemizing taxpayers, the bill also includes provisions that disincentivize charitable giving by individuals and corporations that would seem to more than offset those gains.
Meanwhile, the bill’s cuts to social services like Medicaid and food assistance will result in greater need among vulnerable Americans, thereby putting even more pressure on the nonprofit sector already facing deep federal funding cuts and reeling under the threat of further attacks and persecution by the Trump administration and conservative members of Congress.
Following the passage of the bill in the Senate, the National Council of Nonprofits CEO and President Diane Yentel said in a statement:
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….
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.
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The Council on Foundations president and CEO Kathleen Enright largely echoed those sentiments, stating:
The Senate-passed reconciliation bill represents a clear improvement over the House version in the areas affecting charitable giving and philanthropy, reflecting meaningful changes that respond to concerns raised by our sector. At the same time, we remain deeply concerned that several provisions in the bill—even in its improved Senate form—risk discouraging charitable giving and weakening the charitable sector at a time when communities need it most.
As federal funding decreases and community needs continue to grow, we urge Congress to protect—not penalize—philanthropy for its daily efforts to fill gaps and fuel opportunities in communities across America.
NPQ is monitoring the bill as it makes its way to the House of Representatives, with a potential vote on Wednesday, July 2.
