June 2017

Stronger together: Arizona Grantmakers Forum, Alliance of Arizona Nonprofits team up on tax reform advocacy

In advocacy—and in life—there is power in collaboration. So when my colleague David Martinez III of St. Mary’s Food Bank Alliance recently asked me to join him as co-chair of an Alliance of Arizona Nonprofits ad hoc Tax Reform Policy Committee, I readily agreed.

As Congress undertakes a major overhaul of the federal tax code, it will be vital for philanthropy to lock arms with our nonprofit partners and make our collective voices heard as we educate our congressional delegation about the importance of protecting—and increasing—charitable giving incentives.

There is much at stake for the communities we jointly serve.

New study finds GOP tax plans would hurt charitable giving

While the major proposals maintain the charitable deduction, nonprofit leaders are sounding the alarm that other changes—including reductions in marginal rates or changes to the standard deduction—could significantly reduce giving incentives.

A report released earlier this month estimates that proposed GOP tax reform plans Congress is considering would decrease charitable giving by 4.6 percent, or $13.1 billion.

Conducted by Indiana University Lilly Family School of Philanthropy for Independent Sector, the study also found that making the charitable deduction available to all taxpayers would increase giving by as much as 1.7 percent, or $4.8 billion.

The universal charitable deduction is an idea whose time has come, and the tax reform debate provides an opportunity to promote it with our elected leaders. The Alliance Tax Reform Policy Committee is designing key messages and a strategy to build broad support among our elected policymakers for tax policies that protect and strengthen our communities.

Please stay tuned for details about how you can become engaged in this effort and make an impact for your mission in the coming weeks.

Best,

Laurie Liles
President and Chief Executive Officer