Page 7 - 2019 Advocacy Ebook
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A decline in financial donations could result Because of the shutdown, thousands of people
in cuts to critical services. This will hurt the with disabilities and their families have been
millions of Americans who rely on the services of impacted. These dedicated employees fear they
nonprofit organizations and could unintentionally have been forgotten as Congress provided back
result in an increased reliance of individuals on pay for their federal employee counterparts.
government services. Furthermore, reductions
in services could result in fewer jobs provided At a time when federal funds are declining,
by nonprofits; the nonprofit sector is America’s donors are expected to give less and demand for
third-largest workforce. services like those provided by Goodwill are on
the rise. Nonprofits, their employees and program
While Americans are not likely to stop giving participants should not have to shoulder a greater
completely, we know tax incentives are important financial burden because the government was
when they determine when and how much to closed.
give and the type of gift they make. When donors
have less incentive to give to charities, donations While federal workers harmed by the
decrease. Individuals, children, families and government shutdown have since been
communities suffer along with the charitable compensated for their lost wages, federal contract
sector. For every $1 a donor gets in tax relief, the employees — including janitorial, food and security
public typically receives $3 of benefit. No other services workers who were furloughed or forced to
tax provision generates that kind of positive accept reduced work hours — have not.
public impact.
Goodwill advocates pressed lawmakers to support
The TCJA also included a new unrelated business providing back pay to federal contractors by
income tax (UBIT) on the expenses of nonprofits passing the Fair Compensation for Low-Wage
that provide employees with transportation Contractor Employees Act of 2019.
benefits, such as transit passes and parking.
Research shows the new tax would divert an
average of $12,000 annually from a nonprofit’s
mission. About 10 percent of nonprofits are
considering dropping transportation and parking
benefits altogether.
Legislation Tracker
As lawmakers address the budget deficit and
reform our tax system, Goodwill advocates urged Charitable Giving
Congress to protect charitable giving incentives H.R. 1260 Charitable Giving For All
for individuals and families for both cash and H.R. 651 Charitable Giving Tax Deduction Act
non-cash contributions and to allow all taxpayers UBIT
to receive a benefit for charitable contributions. S. 632/H.R. 1545 Lessen Impediments from
Advocates also requested that lawmakers Taxes (LIFT) for Charities Act
support bipartisan efforts to repeal the UBIT S. 501/H.R. 1223 Stop the Tax Hike on Charities
provision impacting nonprofits. and Places of Worship Act
H.R. 513 Nonprofits Support Act
Back Pay for Federal Contractors
At the start of this year, the nation endured the Back Pay for Federal Contractors
longest government shutdown in our country’s S. 162/H.R. 678 Fair Compensation for Low-
history. Federal contract employees and Wage Contractor Employees Act of 2019
organizations that manage the contracts lost
work and paychecks.
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