The controversial debate about whether or not to offer tax deductions on charitable donations continues to resurface in popularity as leaders propose novel ideas. It’s a debate that takes into account fundamentally different charitable organizations, their size, and varying donor income. Choosing a size is often a matter of perspective. Nonetheless, a comprehensive analysis of this debate how much nonprofit organizations and society stand to lose with the end of tax deductions being offered to donor. This will especially concern the 66.4 percent of smaller registered charitable organizations whose combined expenses make up only 1.8 percent of the category, and generate less than $500,000 in expenses (McKeever). Thus, something has to be done …show more content…
In general, the problem with the nonprofit sector is not a questions of what types of nonprofits are being backed, but what size is receiving the most. Suzanne Perry, a Senior Editor at Chronicle of Philanthropy who specializes in nonprofit news cites a study done by the Institute of Jewish and Community “of more than 8000 donations of at least 1-million each made from 2001 to 2003” (Perry). In it, she writes that “44 percent of total dollars went to colleges and universities, followed by health and medical institutes (16 percent) and arts and culture groups (12 percent), while “social services received only 5 percent” (Perry). In other words, those social service organizations that go out of their way to help the desperate essentially get leftovers. More importantly, this goes to show that wealth charitable donors need to have a greater motive –higher tax deductions– for giving to the smaller and lesser known organizations, many of whom urgently need the extra donations to survive and fulfill their …show more content…
Such an event needs to be avoided at all costs. Diana Aviv, the former president of the Independent Sector, and the current Chief Executive Officer at Feeding America wrote that “some experts predict giving would decrease by as much as 78 billion per year” if no charitable deductions where offered (Aviv). To help put that statistic in perspective, 78 billion of total contributions in 2014 (358.38 billion) is equal to roughly 22 percent –a whopping fifth of the nonprofit sector (source). This significant decrease will impede smaller nonprofits in fulfilling their
Diana George’s article “Changing the Face of Poverty: Nonprofits and the Problem of Representation” focuses on the relation between the society and the issue of poverty. She starts by mentioning that a holiday was approaching, Thanksgiving, “...Thanksgiving is near.” (235) and that some nonprofit organizations will publicise ads to collect money from people. They will send ads via the mailbox and this is an effective way for them to communicate. She addresses some publications and the rise of poverty over the years. She presents the occurrence of poverty throughout the city of London and New York, including photographs that depict the disaster of the Great Depression.
It might come as a surprise to learn that the government is subsidizing what Robert Reich has called a “plutocratic bias” in the charitable sector at a steep cost to the national treasury. This is in large part because the charitable tax deduction, which serves as the charitable sector’s primary financing mechanism, creates tax incentive structures for donors that are steeply regressive. In 2012, tax subsidies to the charitable sector cost the government more than $50 billion in lost tax revenue. Given the billions of dollars in government subsidies and donations, it seems only reasonable to ask if this sector actually supports “charity” by meeting the needs of the most disadvantaged in our society, which is what we have historically
I think this change in the standard accounting process for nonprofits is very beneficial. Although it is difficult to compare nonprofits, it is beneficial for the purposes
In "Changing the Face of Poverty: Nonprofits and the Problem of Representation" Diana George explains how positively changing the way poor people are represented in the world throughout every aspect of life is a huge progression that challenges everyone to look at the face of poverty a different way, and will not be able to turn away.
George is addressing the important issue of the perception of poverty in the United States at this time. She brings up many valid points about the perceptions of poverty in the United States and how nonprofit organizations perpetuate this narrow view of what poverty is in order to elicit contributions (676). Moreover, George is able to show how Habitat for Humanity while helping many people in need. Also gives the false idea that people living in poverty merely need some volunteers to build them a home and then they will be able to work their way right out of poverty (678). Given these points, Prof. George explains, the idea that people in the United States living poverty all live in squalor or are homeless does nothing but limit people’s knowledge of what true people in need actually look like (682). By the same token, when it comes to the actual individuals in need, many of them might not even realize or want to admit that they are in need themselves (682-683). One limiting factor of Prof. George’s article is that she narrowly focuses on one nonprofit organization to show how the majority of nonprofit organizations portray people in
In July 2014, Steven Nardizzi wrote an article, “Measuring Charity Effectiveness: Manage Your Mission, Not Your Rating” for Huffington Post, in which he stated “furthering our mission and broadening our impact was only possible by ignoring conventional wisdom about how nonprofits should be run” (Nardizzi, 2014). Nardizzi went on to state that nonprofits should disregard the pressure that ratings organizations generate for charities to decrease expenditures relating to fundraising and administrative costs. Instead, Nardizzi shared, WWP had chosen to appropriate funding to its efforts relating programs, staff, and infrastructure and fundraising. By doing so, WWP warranted that it could continue to develop in a manner that accomplished its mission while meeting the needs of its various constituents. Nardizzi did acknowledge that they could improve within certain areas such as “measuring and reporting our impact, holding ourselves and our industry to the highest of ethics and profession, informing government officials about the appropriate ways to measure charity effectiveness, and starting a public dialogue about these issues” (Nardizzi, 2014). Nardizzi’s position on the complaints did not acknowledge any misdoings on the part of WWP. Instead, he defended the organization’s choice to disregard charity rating systems—describing them as schemes that do not work. While it is true that nonprofits must endeavor to advance their missions and strengthen their impact, those who provide financial or other types of support should examine external, independent sources of information, and not as Nardizzi suggests, rely up information exclusively form the
their funding and instead support private charities. They promote the reduction of taxes for the
charities did not amount for all of the poor families hardships and were basically given to
There are millions of not-for-profit (NFP) organizations. Each organization has their own definitive set of rules on handling donor gifts. Every time a donor gift is made to a NFP; determination is needed on whether or not the gift needs to be restricted or unrestricted. There are times that gift donations are made at the end of the year so that the donor is able to file on their taxes. The NFP organization needs to have a certified public accountant (CPA) that can get involved in how the donation is given. The direct pupose of this paper is set up to explain the different acconting processes of NFP organizations.
In the last decade, tax exempt institutions have been expanding in New England cities, particularly in education, healthcare, and social services, while the manufacturing and financial services sectors are shrinking (“PILOT Program,” 2014). In Worcester, a city with a large nonprofit sector, tax-exempt properties would have generated $20 million in property taxes in fiscal year 2012 (“How Worcester Loses Out on $20 Million in Property Taxes Annually”, 2012). In order to deal with these fiscal deficits Worcester must implement a voluntary Payment In Lieu of Taxes program. A PILOT agreement is one in which an organization that is otherwise exempt from property taxation under local and state law, agrees to voluntarily make payments in lieu of taxes to a municipality (“PILOT Program,” 2014). Such payments are voluntary because municipalities are prohibited by law from taxing nonprofits. (“PILOT Program,” 2014). In most cases the motivation for tax-exempt organizations to pay PILOTs is scarce. However, when structured PILOT’s are implemented, nonprofit organizations recognize the value of services they receive from the local municipalities and are willing to pay their fair share of those costs.
In his article, “Why Fukushima made me stop worrying and love nuclear power”, Monbiot (2012) uses an inductive form to generate his first key argument to support his main claim that the impact of nuclear energy on people and the planet is less significant compared to burning fossil fuel. His first premise is from the Fukushima disaster incident that shows no fatal cases caused by radiation even though the reactor was ruined. Furthermore, his second premise refers to the 1979 nuclear disaster that occurred in Pennsylvania, where the radiation exposure within 10 miles is 1/625 of the maximum yearly amount permitted for U.S. radiation workers, which is 1/80 of the amount which is deadly. Therefore, he concludes that the death rates caused by radioactive pollution issue are relatively small and the dangers of it were farfetched by the environmentalists. This is a weak inductive argument because the premises may be
Education and effort play a significant role in the accomplishments of an individual. Carol Dweck’s, a renowned Stanford psychologist, claimed in her book The New Psychology of Success that “no matter what your ability, the effort is what ignites that ability and turns it into accomplishments” (41). She explains that effort is what fuels one’s ability to achieve their goals. Effort makes one's goals reachable, pushing the individual to try harder. A person's talents may be predetermined at birth , however, to use those talents to achieve one must utilize effort. The effort will bring people to their goals, however, the individual’s mindset plays a crucial role in whether they use effort. In fact, Carol displays the two mindsets in the
Affirmative action is a policy implemented into programs to provide equal admissions in school institutions and office for those under-represented in America. Affirmative action is an issue because some people believe it is an unfair policy, while others believe that it is one of the ways they can represent themselves in organizations/institutions. Because of historical events that has occurred, a race-conscious policy that creates open doors for those who were oppressed is one of the ways to make progress. Through this paper, the readers will be able to see why affirmative action is justified through premises addressing past injustices, what opposers view against the argument and how those opposer are wrong about their assumptions and a conclusion.
In our great nation, nonprofit organizations have played a critical role in helping people in need by providing education, training, residences, counseling, and in‑kind and cash support. Our nations has called upon nonprofit agencies, to take the leading role in American society in addressing social problems. Their belief in the efficacy of nonprofits combined with the current political and financial constraints on government spending, suggests an even larger service role for nonprofit organizations. We know that politics is complexed in its operating environment. There is a real danger when we choose to ignore the complexity of government and how it