The U.S. Capitol building in Washington.
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Nonprofits and charities across the nation are in danger today. The Tax Reform Bill currently being debated in the United States Senate could completely take away charitable tax deductions for everyday Americans, resulting in a possible $12.5 million revenue loss for nonprofits in Lucas, Wood, and Ottawa counties.
Across the U.S., 31 million taxpayers who claim their charitable deductions will lose this option. According to Indiana University’s School of Philanthropy, fundamental changes in the standard deduction would cause $13 billion in lost private donations to charities. That is a 5 percent decrease in overall giving, with losses concentrated on our faith-based, basic needs, and disaster relief nonprofits.
If the proposed tax reform is enacted in its present state, 95 percent of donors to charity will be taxed on their donations. Only the wealthiest donors will have the ability to make tax-deductible gifts. We want every donor, no matter the dollar amount, to know their donation is valued and critical in strengthening our community.
We urge all Ohioans to contact Sen. Sherrod Brown and Sen. Rob Portman so that we can protect our community’s health and social services.
President and CEO, United Way of Greater Toledo