Page 6 - 2019 Advocacy Ebook
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KEY POLICY ISSUES
Impact of Tax Reform on Nonprofits
Donations are the lifeblood of the nonprofit sector,
and the charitable tax deduction is a century-
old American tradition that encourages giving. As
such, Goodwill seeks to expand charitable giving
incentives and increase donor awareness and
transparency.
Donors play a vital role in Goodwill’s ability to
fulfill its mission. While most Goodwill donations
are clothing or household goods, local Goodwill
organizations collectively receive a significant
Laura Walling speaking to Goodwill advocates. number of individual monetary gifts and
endowments as well.
Advocating for a Better Future
As nonprofit organizations continue to meet
This year, Goodwill advocates educated their increased demand for services while receiving
lawmakers on three key policy issues. less state and federal support, Congress should
encourage everyone, regardless of income, to give
Funding more to charitable organizations that the most
Local Goodwill organizations provide a variety vulnerable in our society use to improve their lives.
of workforce development services in their
communities. In 2018, more than 33 million Goodwill harnesses the power of donations to help
people engaged in face-to-face services to people achieve their full potential through learning
advance their careers or used computers and and the power of work. Last year, local Goodwill
mobile devices to access Goodwill’s education, organizations collectively earned the trust of more
training, mentoring and online services to than 105 million donors.
strengthen their skills and improve their lives.
However, the Tax Cuts and Jobs Act (TCJA) doubled
The talent shortage continues to stymie the standard tax deduction, which will make it a
businesses, and employers are tapping more attractive option to most Americans. The Tax
nontraditional sources to meet recruiting Policy Center estimates the number of itemizers
demands. Every community’s talent pipeline will decline from 46 million to 13 million as more
can be strengthened to address the needs of Americans take the standard deduction because
its businesses. Goodwill is poised to leverage its they stand to gain financially. Although charitable
workforce development network to help more deductions will still be allowed for those who
individuals develop their skills and earn careers. itemize, fewer Americans will choose this option. As
a result, there is a reasonable potential for a drop in
America’s skills crisis in key sectors is negatively charitable contributions.
impacting our global competitiveness, so
Goodwill advocates educated their lawmakers As individuals and governments control
on why it is critical that they invest in education expenses during lean fiscal times, local Goodwill
and training programs that prepare a qualified organizations around the country have seen a
workforce to meet the needs of American decrease in public funding while the needs of
employers. Specific funding areas discussed individuals with barriers to employment continue
pertained to the Workforce Innovation and to grow. Nonprofits need greater support and
Opportunity Act (WIOA), older workers, Career resources to respond effectively to expanding
and Technical Education (CTE), apprenticeships, needs.
youth and people exiting the justice system.
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