Nonprofit Blog

Welcome to the Nonprofit Blog hosted by the professionals at Armanino, CPAs & Consultants. This blog is set up to inform nonprofit organizations of trends, rule changes, best practices and free educational offerings that we have built to support nonprofit organizations. Our professionals bring you their insights from an accounting and organization perspective to help nonprofits reach their goals. We support our clients with advice, direction and best practices.

Friday, November 9, 2012

How Nonprofits May be Impacted by President Obama

Posted by Armanino Nonprofit Team

Congratulations to Barack Obama for successfully securing his second term as president of the United States.  President Obama certainly has a lot of work cut out for him and a lot of goals to achieve, one of which is to reduce the national deficit.  His plans for reducing that deficit may have a major impact to nonprofit organizations.  If President Obama seeks to limit charitable deductions and is successful in doing so, nonprofits may suffer through reduced giving.  President Obama has a history of proposing to reduce the charitable deduction rate for those in the top tax bracket, thus reducing the tax incentive for the wealthy to give to nonprofit organizations. Certain nonprofit leaders are against reducing the charitable deduction limit, fearing that it would stifle donations to their organizations, while other nonprofit leaders believe that changes to the tax code will not have a significant impact.  The thinking being that if a donation is truly a charitable act, then the donor would not need or want a deduction.
Regardless of President Obama’s plan to reduce the national deficit, let’s hope that giving will continue.  Donors need to remember the true purpose of a donation to a nonprofit – that is to help the nonprofit carry out its mission – and not to help one’s personal financial situation.   

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