As someone who runs a small not-for-profit theatre, I’m keenly paying attention to how the debate over the Obama administration’s proposed limits on charitable deductions will play out.
Many think it will have a negative impact on the fundraising bottom line. Some think it won’t hit so hard. I think it depends on where you sit. All not-for-profits are not the same. If this passes (and there is already opposition to it from both sides of the aisle in Congress) it will change things.
I think the first effects will be that some donors will use this an excuse not to support the charities they’ve been supporting. But, we’ll have to see how this plays out.
The real puzzler here to me is that regardless of what the real outcome will be, I’m sure we’ll see the psychological impact of this lead to some not-for-profits, who are already struggling, close their doors. Small not-for-profits need funds to run no question, but they also run on the good will, energy, and desires of those who staff them and support them on boards of directors. Guaranteed you’ll see some folks currently running and staffing not-for-profits making a change if this passes and is deemed to have a negative impact. That won’t be a healthy thing.
MSNBC has a good article that looks at various points of view on this. The New York Times has some info also. But it is way too early to separate out the fear from the reality.
