The Trump administration and Republican congressional leaders recently released their framework for tax reform, which includes proposals that nonprofit sector leaders say would result in billions of charitable dollars lost each year.

There are powerful arguments to be made for doubling the standard deduction, especially for middle-income wage earners. But if we do that, it will move many more people away from itemizing on their taxes to use the charitable deduction and decrease charitable giving by as much as $13.1 billion a year.

Although the framework is brief, it identifies probable items in the tax reform bill that would have a direct effect on nonprofit finances: a doubling of the standard deduction; repeal of the estate tax; and the likelihood of sharply reduced government social spending. If approved, these changes would alter the policy landscape for the nonprofit and philanthropic sectors, reduce charitable giving and, ultimately, cut funding for programs that help millions of people in the United States.

Read the full article on the proposed federal tax reform at Charles Stewart Mott Foundation