NDANO works with the National Council of Nonprofits and its state association network to monitor federal legislative issues and distributes bi-monthly newsletters to members.
Staying Nonpartisan Key to Nonprofit Impact
Federal legislation (S. 264 and H.R. 781) has been introduced to repeal the 1954 Johnson Amendment, which prohibits charitable nonprofits, including churches, from endorsing or opposing candidates for elective office. NDANO believes current law requiring charitable nonprofits to remain nonpartisan is the best way to advance missions and work as partners with all levels of government. NDANO opposes the repeal because existing law protects both nonprofits and the public.
Nonprofits are safe spaces in our communities, designed to be above the political fray. Preventing the application of party labels allows us to focus on solving problems, helping our neighbors and enriching our communities. Nonpartisan credibility is critical to the ability of 501(c)(3) organizations to work with elected officials of all parties at the local, state and federal levels to address community needs. Keeping this protection in place is essential to nonprofit missions.
Learn more about this campaign to protect nonprofit nonpartisanship.
Protect the Charitable Giving Incentive
NDANO supports continuation of the federal charitable deduction. We are concerned about reports that the 115th Congress could limit, alter or diminish the impact of the current itemized deduction for charitable donations. This year marks the 100th anniversary of the enactment of the charitable deduction, an incentive that encourages individuals to give to charitable organizations whose missions they support.
The Charitable Giving Coalition raises several tax reform concerns:
- Several proposals include limitations on the deduction. For example:
- The House Republican Blueprint and President Trump’s Tax plan propose to vastly increase the number of taxpayers who take the Standard Deduction. This vastly decreases taxpayers who itemize – from 30% to 5%. Therefore, the charitable deduction will not be available to 95% of taxpayers.
- The Trump plan also places a hard cap on itemized deductions ($100,000 individual/$200,000 couples, joint filing).
- The nonpartisan Tax Policy Center estimates the Trump plan would reduce giving by 4.5 to 9%.
- American Enterprise Institute estimates the Trump plan could eliminate more than $17 BILLION in annual giving.
- Other proposals have proposed a floor on the charitable deduction (such as the tax reform discussion draft from former Ways & Means Chairman Dave Camp.) Floors send a signal that smaller gifts are less valued – a particularly troubling message to middle- and lower-income donors.
- The Congressional Budget Office indicated that a floor of 2% of Adjusted Gross Income (AGI) would reduce annual charitable giving by $3 billion.