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December 7, 2024
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Linking Northern and Central NJ, Bronx, Manhattan, Westchester and CT

Pallone Holds Roundtable on Impact of GOP Tax Law on Non-Profits

(Courtesy of Rep. Frank Pallone) This week at Children’s Specialized Hospital in New Brunswick, New Jersey, Congressman Frank Pallone, Jr. (NJ-06) and New Jersey non-profit leaders discussed how the GOP tax law created disincentives toward charitable giving. The law raised the standard deduction and eliminated many itemized deductions, making it less likely that tax filers will continue itemizing, in turn removing an incentive to donate to charitable organizations. Non-profit organizations rely on charitable contributions to operate throughout the state; without sufficient assistance, they may be forced to cut back on the community services they provide.

“With the Trump administration slashing programs for working families, non-profits and charitable organizations are already having to fill the void for essential services in many communities,” said Pallone. “Now, the GOP tax scam is jeopardizing the funding that allows these organizations to operate. I want to thank all those speaking out against this misguided tax law and working to ensure that New Jersey non-profits will be able to continue to serve our communities.”

The non-profit community is deeply concerned about potential steep decreases to charitable giving as a result of provisions in the tax law. These organizations rely on revenue collected from donations in order to operate and provide support services throughout the state. Currently, charities are already operating under tight margins, especially as the demand for their services continues to increase. Federal and state supplemental funding has not been able to meet the need. Any contribution reductions as a result of the tax law may be devastating to the charities and the people, communities and causes that depend on them for critical programs and services.

According to the NJ Centers for Non-Profits, decreased services would harm large proportions of New Jerseyans across income levels, impose immense fiscal pressures on state and local governments, and decimate charities when demand for services is already outpacing needed resources to fill community needs. According to their New Jersey Non-Profits 2018 Trends and Outlook Survey, 71 percent of respondents reported that demand for services increased during the past year, 77 percent expect demand to continue increasing and 56 percent reported their expenses were higher last year than in previous years.

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