Nonprofits ask U.S. Senate to reject tax changes they say would hurt them and the people they serve
Republished from Kentucky Lantern
When tornadoes strike or floodwaters rise in Kentucky, it’s local charitable nonprofits that mobilize early to provide relief, working hand in hand with first responders to help neighbors in crisis. Within hours, nonprofits and volunteers are clearing debris, offering shelter and serving hot meals from a borrowed kitchen.
Beyond disaster response, nonprofits are our champions — our neighbors quietly stepping in to bridge a critical and often urgent gap among public systems. They provide shelter to women and children escaping domestic violence. They mentor rural students in STEM and the arts. They deliver meals to seniors. They provide quality after-school and summer youth programs. They connect families with vital services. Nonprofits provide calm in the chaos, hope in times of hopelessness, and opportunity and joy in moments of despair.
Yet despite their incredible impact and critical role, some Americans question whether nonprofits are truly essential. That’s because when nonprofits are doing their jobs well, they can be nearly invisible. They quietly fill critical service gaps with urgency and professionalism, regardless of politics or recognition. Nonprofits are indeed essential and make no mistake: their impact is anything but small.
Today, the impact of charitable nonprofits is under threat.
Recent federal funding cuts and uncertain future funding are straining many nonprofits. Now, Congress is advancing tax legislation that could make matters worse for nonprofits in Kentucky and across the nation, and more importantly, for the people nonprofits serve. The bill would increase taxes on foundations and nonprofits and disincentivize charitable giving, diverting critical resources away from the very organizations our communities rely on. The bill also threatens critical safety-net programs for Kentucky’s most vulnerable.
A recent Impact Report from Kentucky Nonprofit Network, the state’s association of charitable nonprofits, highlights what’s at stake: nearly half of Kentucky nonprofits partner with federal, state or local governments to deliver services that help communities thrive. Nonprofit–government partnerships help Kentucky tackle our most pressing challenges and opportunities. When resources and partnerships are cut, delayed or withdrawn, it’s not just a financial issue, it’s also a crisis that impacts families, communities and local economies across the commonwealth.
A rural food pantry may not be able to feed hungry families. A veterans’ organization might not make payroll. A community theater may shut its doors and close a vital aspect of local tourism. A domestic violence shelter could turn away families in desperate need because they don’t have enough staff. Even nonprofits not directly impacted — like the animal shelter where you adopted your pet— feel the ripple effects.
These aren’t hypotheticals. They’re happening right now. And this isn’t just a nonprofit problem. It’s a community problem. It’s our problem, yours and mine.
Nonprofits are our neighbors, working alongside government and businesses to build healthy and safe communities, a strong workforce and a vibrant economy. When they’re underfunded and threatened, we all lose.
We’re calling on legislators to recognize the nonprofit sector as the indispensable partner it is. Specifically, we’re calling on Kentucky’s U.S. senators to work to remove harmful provisions from the federal tax bill and instead bolster support for nonprofits by expanding incentives for charitable giving and ensuring funding priorities that reflect the critical role of nonprofits in Kentucky communities.
About the author
Danielle Tharp Clore is the executive director and CEO of Kentucky Nonprofit Network (KNN), the state association of charitable nonprofits she founded in 2002. KNN serves as a unified public policy voice and resource for nonprofit impact for charities across the commonwealth.
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