01/17/2018
State and local governments rely on nonprofits to deliver most social services, from housing to substance abuse treatment to early childhood education. Now those nonprofits, and their government partners, are concerned that the new tax law passed in December could indirectly slash their funding.
One of the reasons people give to nonprofits is for the tax benefits. But in order to cash in on the incentives for charitable giving, people have to itemize their deductions instead of claiming the standard deduction.
The tax changes certainly make fundraisers' jobs more challenging, says Lee Sherman, president and CEO at the National Human Services Assembly, a national organization representing nonprofits: “When we think about it on the broad scale, across the nation, even taking down a few percentage points of the total giving is a lot of money."
source/ Governing Magazine
Charitable giving is expected to drop, and nonprofits that operate social services for the government will likely take the biggest hit.