Recent tax code reform discussions in Washington have generated concern in the nonprofit community regarding the future of charitable contributions.
Charitable giving is affected by our tax code in several ways, including taxpayer tax brackets and the itemized deduction itself. Add to that any potential change to estate taxes, and you have a complex system that could greatly affect charitable giving.
How should the nonprofit community respond?
One way is to stay informed about potential changes to the tax code. Communicate with your elected officials about how these changes could affect your organization and others that address the needs in your community.
Equally important is to stay in touch with your donor base about the good works you are doing in your community. Donors may cite the tax code as one reason to drive their desire to contribute, but the reason they give to your nonprofit is because they believe in your cause and your mission. Keep your mission and how you’re improving your community in front of your donors.
“We make a living by what we get, but we make a life by what we give.”