Nonprofits around the country face a potential double whammy at year’s end with possible cuts to government grants paired with caps on charitable gift deductions. Nashville charities are being told to plan accordingly.
Going over the fiscal cliff could mean cuts to government funds that go to nonprofits. Averting the cliff with a budget deal may include a cap on charitable deductions, particularly for high earners.
With financial pressures on all sides, Lewis Lavine of the Center for Nonprofit Management says charities should consider cutting their expenses.
“The second thing you can do is to encourage donors to give now, before the end of the year. That doesn’t help us long term, but it helps us short term.”
After all, Lavine says the tax code is still set in stone for the next two weeks.
The Community Foundation of Middle Tennessee is trying to take advantage. The group is advertising it’s donor-advised funds, which would allow people to give generically and get this year’s tax treatment, then decide down the road what to do with the money.