Inauguration Day was recently upon us! Whether you are excited to see what the new administration will bring, or ready to flee the country, we need to prepare for changes. Here at the Tapolci Foundation, we will be using Inauguration Day to open up a discussion about how a change in government administration can impact the non-profit sector.
Anytime we elect a new president, the president-elect has the opportunity to nominate new officials for his administration. This massive change in the executive branch of government always brings up questions for the non-profit sector. However, this year we have additional questions due to the switch from a Democratic president to a Republican executive administration. So what are these questions?
Will Philanthropic Giving Decline?
The Tax Policy Center speculates that “Trump’s plan would reduce individual giving by 4.5 percent to 9 percent, or between $13.5 billion and $26.1 billion in 2017.” The new tax plan would cut tax rates for the wealthy, thus reducing the need for tax breaks for the wealthiest donors. This would lead to a dependence on public funding for most non-profits, schools and other government organizations.
Will Public Funding Disappear?
Although private donors help non-profits provide their services, organizations do not get all of their funding through donations. According to the Pittsburgh Foundation, a community foundation that paid out $35 million in grants in 2015, “No amount of private philanthropy can replace the services that comprise the safety net that government provides for those who are most vulnerable.”
What Can Non-profit Organizations Do to Adjust?
There are a variety of things that non-profit organizations already do to protect themselves from the day-to-day fluctuations of donor and public sector giving. These things include engaging and connecting with donors, creating collaborations with other similar organizations to advocate for your cause, and most importantly maintaining your vision and not getting discouraged.
Are you anticipating any significant changes due to the new administration? Please share your thoughts in the comments!