As it stands there are over 1.4 million nonprofits in the U.S. That equates to one nonprofit for every 228 people in America! Adding to this already huge sector we see that there are 175 new nonprofits created everyday with the exception of Saturday, Sunday and holidays!
According to the The World Factbook, “The asset base of the sector would make the ‘nonprofit economy’ the sixth largest in the world – larger than the economies of Brazil, Russia, Canada, Mexico, and South Korea.”
Yet with the proposed lower limit to the charitable deduction, a family making more that $250,000, will cause nonprofits to lose over $3.9 billion in contributions according to a recent study by the Indiana University Center on Philanthropy. Based on 2006 data if the Obama tax plan had been in effect looking at those making $250,000 would have decreased their giving by 4.6% or approximately 3.9 billion dollars not going to charity!
This fact alone is disturbing but realizing that as much as one third of all foundation assets were wiped out by recent the stock market collapse means the sector has already lost $200 billion in available assets! Thankfully some of these loses have been recovered from the slight rebound yet it is painfully obvious that an all out attack is being made on the nonprofit arena!
Don’t be surprised when you notice nonprofits closing their doors at the same time the need for assistance increases. This apparently is part of a larger plan this administration has for shrinking the nonprofit arena and apparently making people more dependent on the government for help.
DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.