As the Cliff Looms, Experts Weigh In

Since a stroll off of the fiscal cliff now appears more likely as pre-Christmas negotiations ended without an agreement, I thought I’d bring you a brief  roundup of what such an event may mean to nonprofits from sector experts far more prescient than this blogger.

To put it in simplest terms, nonprofits are concerned with the cliff because going over it will trigger caps on itemized deductions, including charitable donations, likely resulting in a decrease in donations, and therefore overall revenue, to their organization. In a time of increased need and decreased government funding (likely to drop more in the face of additional cuts),  this is a potentially serious situation.

 

 

 

 

There is a chance that after the 26th, dueling proposals and related negotiations will be revisited and all of the hyperventilating will be moot.  Or maybe not.  Do you think donations to your nonprofit will decline substantially if a federal cap on deductions is enacted?   If so, how do you plan to face this change?