Senate Tax Bill: Extremely Harmful to Americans and Nonprofits, But Less Bad Than the House Version

WASHINGTON--()--Tim Delaney, President and CEO of the National Council of Nonprofits, issued the following statement expressing grave disappointment in the Senate’s passage of the Tax Cuts and Jobs Act:

"The House and Senate had the opportunity to create a tax bill that would benefit every American, but every significant choice they made creates more harm than good. Their tax cuts scheme would undermine the ability of charitable nonprofits to serve our communities. Changes to the tax code would drastically reduce charitable giving by as much as $20 billion every year. The bills touted as job creators will put up to 264,000 nonprofit employees out of work. And by reducing revenue by more than a trillion dollars, the bills inevitably will lead to massive spending cuts at all levels of government, growing demand for nonprofit services at the same time that nonprofit budgets are shrinking.

“The only good thing charitable nonprofits can say about the Senate-passed tax bill is that the House version is even worse. Senators can take pride that they were not duped into including the radical provision in the House bill that would politicize houses of worship, charitable nonprofits, and foundations. That provision would eliminate longstanding, vital protections for charitable, religious, and philanthropic organizations by allowing political operatives to pressure those organizations to endorse or oppose candidates, and powerful donors to exert even more pressure by giving or threatening to withhold charitable contributions to get the organizations to endorse or oppose candidates the donors prefer. The House bill would make political donations – for the first time ever – tax-deductible when funneled through those organizations. The Senate respected, but the House blatantly ignored, the widespread and resolute opposition expressed by houses of worship, law enforcement officials, charitable nonprofits, foundations, and the vast majority of the American public. This shameful attempt to advance the self-interest of politicians for more money and control at the expense of independent civil society must be stricken from the tax bill that comes out of the conference committee.”

About the National Council of Nonprofits

The National Council of Nonprofits (Council of Nonprofits) is a trusted resource and proven advocate for America’s charitable nonprofits. Connecting the policy dots across all levels and branches of governments, the Council of Nonprofits keeps nonprofits informed and empowered to create a positive public policy environment that best supports nonprofits in advancing their missions. Working with and through the nation’s largest network of nonprofits – with 25,000-plus organizational members - we identify emerging trends, share proven practices, and promote solutions that benefit charitable nonprofits and the communities they serve.

General Background

Opposition to the Radical House Provision by:

Charitable and Philanthropic Organizations

Law Enforcement

Religious Groups and Leaders

Public Polls


National Council of Nonprofits
Rick Cohen, 202-962-0322