This request is so important to the Chattanooga community. At JHM, we are closely involved with local nonprofits, and we see the day-to-day struggles they are now having in providing their critical programs and services to those in need. Like many other businesses, their very survival is at risk during this crisis.
Nonprofits are seeking $60 billion in federal financial assistance to help them remain solvent, respond to needs and offset losses many are suffering during the current crisis.
“Without dramatic and immediate financial and programmatic backstop from government, America’s charitable nonprofits and the people we serve face a precipitous decline in mission services at a time when our efforts are needed like never before by the most vulnerable in our communities,” states a letter endorsed by more than 50 nonprofit groups.
United Way Worldwide CEO Brian Gallagher said that it makes sense for Congress to assist nonprofits in the same manner it will certain business sectors.
“We’re bigger than the airline industry.” Gallagher said. “We are a huge employer in this country, and our people help other people.”
The letter states that many nonprofits will suffer from both a loss of contributions due to stock market declines, as well as an increased demand for services.
“Millions of jobs in America’s charitable sector are at risk unless a reliable source of cash can be provided to assure continued operations,” the letter states. “And in many cases, the scope of operations will need to expand to accommodate increased demand for vital services.”
The tax law of 2017 roughly doubled the standard deduction, meaning fewer people itemize and receive tax benefit for charitable contributions. The letter calls for Congress to allow donors who are giving now to use those deductions on their 2019 returns and to enact a temporary “universal deduction” for all taxpayers, regardless of whether they itemize their deductions.
At JHM, we fully support such critical and necessary aid for our many important nonprofits.