Hawaii nonprofits defend charitable giving incentive

During the past two months, Hawaii’s nonprofit leaders joined others across the country to urge Congress to protect the incentive for individuals to make donations to charitable organizations. Almost 50 Hawaii nonprofits added their names to a national letter, which was delivered to the members of the super-committee assigned to craft a deficit reduction plan. Click here for the list.

The subject of the letter was individual donations to nonprofits and proposals circulating in Washington, D.C. that would reduce the incentive for individuals to make those donations. More than 80 percent of all donations to nonprofits are given by individuals. We know that those individuals, while motivated by a passion for the causes we pursue, still consider the tax benefits of making contributions to charitable nonprofits. If Congress were to limit or eliminate those benefits, we can be certain that nonprofits will raise less money.

Who would be hurt most if Congress shatters the incentive to make donations? The people and communities served by nonprofits. That includes these people:

• Hard-working Americans who visited nonprofit housing agencies in the past three years to cope with foreclosure on their homes.
• Families who found themselves without a home and knocking on the door of a homeless shelter for the first time in their lives.
• Children in after-school and programs who need the boost from these nonprofits which support the educational goals of schools after the final school bell rings.
• Individuals coping with behavioral health issues who need a counselor when life throws them a curve ball.

48 nonprofits in Hawaii stood up for those people this fall. HANO applauds their defense of the resources we need to meet the large and growing issues facing our communities. The 48 nonprofits that added their names to the national letter urging Congress to protect the charitable giving incentive acted as leaders who spoke with one voice for the communities they serve.

The super-committee’s failure to finalize a deficit reduction provided a moment to pause and reflect on this leadership and celebrate those leaders. But we have not heard the end of this issue in Congress and we may face similar challenges to the charitable giving incentive for individuals on their state income taxes in Hawaii. Furthermore, other threats loom at the Legislature, in City Hall and at county councils to eliminate tax exemptions for nonprofits or charge fees that have the same effect. We must be vigilant and ready to speak again.