Community Impact Coalition

About the Coalition

   

The Community Impact Coalition (CIC) was established to protect the tax-exempt status of nonprofits and educate lawmakers on their vital contributions to society. It aims to highlight the potential negative consequences of taxing nonprofits and ensure they can continue to serve communities effectively. Today, some lawmakers view nonprofits as potential revenue sources during tax reform discussions. Proposals have included eliminating the charitable deduction for certain health associations and charities, taxing net non-donation revenue, and applying corporate tax rates to nonprofit income. Taxing nonprofits reduces access to essential services, increases strain on government resources and undermines charitable giving. This could have a ripple effect, harming both individuals and communities. The coalition aims to educate Congress on the societal and economic value of tax-exempt organizations and advocate against proposals that would diminish or eliminate their tax-exempt status, thereby preventing potential harm to individuals and communities.

Background

Lawmakers are considering using nonprofits as a revenue source by subjecting them to taxes, such as a 21% corporate tax rate on certain revenues. These measures would significantly hinder nonprofits' ability to fulfill their missions. Tax-exempt status allows nonprofits to reinvest their revenue into their mission rather than paying taxes like for-profit businesses. This enables them to provide essential services such as disaster relief, veteran support, medical research and educational programs.