Rep. Ilhan Omar Signs onto Key Charitable Sector Priorities

Tuesday, April 2, 2019

MCF visited with staff from each member of Minnesota's Congressional delegation in Washington D.C. in March to talk about how federal tax policy can promote philanthropy and charitable giving. After our meetings, we received the exciting news that Representative Ilhan Omar is signing on as a co-author to bills focused on two key charitable sector priorities! 

Expanding the Charitable Giving Tax Incentive to Everyone

With tax reform, the tax incentive to give is now only available to approx. 10% of households. We’re already seeing some concerning changes in 2018 giving patterns, and we want Congress to revisit how charitable giving is incentivized. As a sector, we would like to see a universal charitable deduction or universal tax credit that incentivizes all taxpayers – regardless of income – to give. There’s bipartisan support for this issue, and we are excited for Rep. Omar's leadership in encouraging charitable giving! Rep. Omar has signed onto two bills that propose a universal charitable giving deduction [H.R. 651 and H.R. 1260].

Repeal the New UBIT Taxes & Requirements on Nonprofits, Foundations, and Places of Worship

Tax reform included a new tax on nonprofit employee fringe benefits, putting an onerous 21% federal tax on employee transportation and parking benefits. It also required nonprofits with more than one unrelated business or trade to compute unrelated business taxable income separately for each trade or business. These new taxes and requirements for nonprofits are costly and burdensome, diverting money from mission [estimated to cost an average of 12K for fringe benefits and 15K for siloing income streams]. As a sector, we ask Congress to repeal both provisions. There’s bipartisan interest in addressing this issue in the immediate term. Rep. Omar has signed onto a bill that would repeal the new tax on nonprofit employee fringe beneifts [H.R. 1223].

If you live in Minnesota's fifth district, we encourage you to tell the Congresswoman thank you for her support of the philanthropic and nonprofit sector!

MCF advocates at the state and federal level for policies that promote philanthropy and charitable giving. 

 

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