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.
Nonprofit organizations have specialized audit, tax and operational needs that require specialized service. Armanino has been committed to the nonprofit sector since 1953, and we now work with more than 500 nonprofit clients. This hands-on experience gives our staff of CPAs and former CFOs a deeper understanding of the issues nonprofits face, so we’re able to meet their needs and help them fulfill their missions in the most efficient, cost-effective way possible.