Action Alert: Protect the Charitable Giving Incentive, Oppose Arbitrary Cuts
Like many North Dakota nonprofits, you may be wondering:
1. What does the looming economic crisis known as the "fiscal cliff" mean to nonprofit organizations?
2. Will Congress take away the charitable giving incentive that supports the work of all charitable nonprofits?
The short answer to both questions is that there is real concern, and we must raise our voices now.
The North Dakota Association of Nonprofit Organizations (NDANO) asks your organization take immediate action to help influence the outcome of the current debate in Congress. NDANO has already sent letters to our U.S. Senators and Representative to express our opposition to the arbitrary cuts and to protect the charitable giving incentive.
Now, they need to hear from you: tell Washington to support nonprofits by opposing the arbitrary cuts and protecting charitable giving.
What's at Stake?
The Fiscal Cliff: Congress is running out of time to reach an agreement on nearly $55 billion in arbitrary spending cuts to domestic programs and $500 billion in tax hikes that will weaken many public programs and services performed by nonprofits, increase demand on nonprofits, and slow the economy if no action is taken by Dec. 31. The Congressional Budget Office and many economists are predicting a double-dip recession if no action is taken by policymakers in Washington to steer the country away from the automatic spending cuts and tax increases known as the fiscal cliff.
Significant Threat to Charitable Donations: Democrats and Republicans alike are pointing to an alternative proposal that would raise some tax revenue but devastate the work of nonprofits and the communities they serve. Policymakers are giving serious consideration to a plan to cap itemized deductions - including charitable deductions - at $17,000 or $25,000 for an individual. By all accounts, this approach would have the most significant, adverse impact on the work of charitable nonprofits because a cap on itemized deductions would be fully used up by fixed-cost deductions, such as mortgage interest and state/local taxes. A cap would leave little or no room for discretionary gifts to the work of the charities in our communities.