Last week, the Senate Finance Committee passed the Tax Cuts and Jobs Act out of committee and sent it to the Senate floor for a vote by the full chamber. This bill, as written, contains a number of provisions that would both directly and indirectly harm charitable giving. If it passes, it would be very dangerous for our sector and civil society, broadly.
While the Senate bill maintains the charitable deduction, by increasing the standard deduction, changing marginal income tax brackets and moving the estate tax trigger level to $10 million, it would lead to a significant decrease in charitable giving and disastrous outcomes for the nonprofit sector. A recent study by the Tax Policy Center estimates that H.R. 1—which contains many of the same provisions as the Senate bill—would decrease charitable giving by $16-$24 billion over the course of a year. Additionally, the Joint Committee on Taxation analysis of H.R. 1 finds that charitable deductions will decrease by $95 billion from current law, an almost 40% reduction.
This is the moment to take action to protect philanthropy. If ever your Senators needed to hear from you, it is RIGHT NOW. The Senate is expected to vote on the tax legislation after the Thanksgiving break. This bill fails our sector, our donors, and the people we serve. Tell your Senators to vote no on the Senate tax bill.
TAKE ACTION NOW
Senior Vice President, Government Relations