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Policy Alert: Tax Reform Legislation

Policy Alert: Tax Reform Legislation

Tax Reform Legislation Expected in the U.S. House This Week
This legislation nearly doubles the standard deduction for charitable giving, and thus reduces the percentage of taxpayers who would take this charitable deduction from 30 percent to 5 percent. This could reduce giving by up to $13 billion, according to research from Independent Sector. It is still possible for Congress to include a universal deduction, which would allow 95 percent of non-itemizing taxpayers to equally benefit from the charitable deduction. This could potentially boost giving by up to $4.8 billion per year. 

Legislation's Impact on the Johnson Amendment
Another component that could potentially make its way into the bill is a weakening of the Johnson Amendment, the provision that frees nonprofits from the constraints of partisanship and politics. The bill could allow nonprofits and churches to declare political allegiance, which could alienate potential supporters. This would mean nonprofit organizations would be at the mercy of changing political winds, instead of focusing on their mission and development. And although there would be a relaxing of the constraints placed on nonprofits who would engage in partisanship or politics, the practice would still be considered illegal, inviting an increased and verbose enforcement and regulation.

What can you do?
This legislation could obviously have an impact on your bottom line as a charitable organization. Below we have included contact information, including Twitter handles, for Congressman Emanuel Cleaver (MO), Congressman Kevin Yoder (KS), Senators Claire McCaskill (MO) and Roy Blunt (MO), and Senators Jerry Moran (KS) and Pat Roberts (KS). You can call or tweet your legislators today, and let them know how this change in tax policy could affect your organization's work, including the people your organization serves.

Missouri

  • Congressman Emanuel Cleaver: (202) 225-4535 - Twitter: @repcleaver
  • Senator Claire McCaskill: (202) 224-6154 - Twitter: @clairecmc
  • Senator Roy Blunt: (202) 224-5721 - Twitter: @RoyBlunt

Kansas
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