Analysis indicates tax reform bill will negatively impact Delaware nonprofits

DANA, the Delaware Alliance for Nonprofit Advancement, raises several concerns about the recent federal tax reform initiatives. An analysis of the Tax Cuts and Jobs Act under consideration by the House and Senate reveals several issues which, if passed, would negatively impact the ability of charitable nonprofits to serve Delaware citizens and communities.

The National Council of Nonprofits, of which DANA is a member, conducted a review of both tax reform bills brought forward in the full House and a Senate committee. Highlighted concerns include the curtailing the 100-year-old charitable gift tax incentive, the potential to inject partisan politics into the work of nonprofits, the imposition of new taxes on tax-exempt to pay for tax cuts, and the projected deficit increase which could adversely impact federal, state and local governments. These and other challenges are outlined in Comparison of House and Senate Tax Bills and Impacts on Nonprofits,

"H.R. 1, as currently written in both the House and Senate, would be devastating for our Delaware's communities," said Sheila Bravo, president and CEO, Delaware Alliance for Nonprofit Advancement "Nonprofits serving our most vulnerable communities are still recovering from decreases to state funding sources, and will suffer additional cuts because of this legislation.

At the same time, individual giving is projected to sharply decrease by curtailing the charitable deduction. This sharp drop is compounded with the repeal of the Johnson Amendment, which has enabled nonprofits and houses of worship to remain free from partisan politics for decades. Delaware needs a thriving and healthy nonprofit sector, and these proposed changes to the tax code will undermine a nonprofit's ability raise the resources it needs to serve our community."

To learn more contact DANA, or visit its website delawarenonprofit.org, for additional perspective on how the tax bills will affect Delaware's nonprofits and the people they serve in communities across the state.