Nonprofits would be harmed by jobs bill

Friday, November 4, 2011

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It’s hard to believe, but winter is just a few weeks away. Soon, we’ll hear bells ringing at holiday charity collection kettles. They’re a physical reminder of the important role nonprofit organizations play in the Granite State. You may be surprised to learn just how big their role is, and even more surprised to hear what some people in Washington are trying to do that would hinder their efforts to provide much-needed services.

The New Hampshire Center for Nonprofits reported 7,817 nonprofit organizations operated in our state in 2008. They support activities ranging from community based groups that we traditionally think of as “charities,” to providing of health and medical services, to learning and higher education, plus a number of things in between. These groups employed one of every eight New Hampshire workers in 2008 and generated $8 billion for our economy. Nonprofits not only help their communities, but they’re also important to New Hampshire’s bottom line.

Granite Staters enthusiastically support these groups. According to the Corporation for National and Community Service, 334,000 people volunteered with New Hampshire nonprofits in 2007, giving 40.4 million hours of service. That’s more than three 40 hour weeks per person.

There’s no doubting the vital contribution these groups make. They help people every day, and often are far more effective in delivering services than city, state and federal governments.

Like everybody else, the nonprofit sector has been hit hard by the down economy. Donations dropped as Americans slugged their way through the worst economic crisis in 80 years. But nonprofits have responded with a tenacity that is encouraging and inspiring. Like so many of us, they’ve learned how to make do with less, how to stretch every dollar as far as they can and to focus on priorities to make sure they continue fulfilling their core missions. That dedication and perseverance in the face of financial adversity is a valuable lesson for all of us.

Yet, with many nonprofit groups struggling to keep their doors open, I question why President Barack Obama is looking to cut charitable tax deductions for those individuals who give the most to these organizations.

I’ve shared with you before in this column how important it is for Washington to bring spending under control and to put our fiscal house in order.

But there is a right way and a wrong way to do things, and the jobs bill that President Obama submitted to Congress last month contained harmful consequences to nonprofit groups.

It limited charitable tax deductions for people making more than $200,000 a year (or $250,000 per couple).

More than 40 percent of all tax-deductible charitable donations coming from families would be impacted by that change. 

I agree our tax code needs substantial, powerful reforms. But we must ensure we don’t penalize the very groups that are doing so much to help our communities. If their services are lost, we would see increased requests for more federal spending to cover that cost. Let’s not remove a deduction that does so much good without adding to our debt and deficit.

I’m also working to help nonprofits in other ways. For example, I’m co-sponsoring H.R. 860. It would amend the Internal Revenue Code of 1986 to promote charitable donations of vehicles.

Six years ago, Congress changed the tax code to stop vehicle donation abuses. That inadvertently created a new problem and wound up discouraging vehicle donations, causing a 67 percent decrease in the first year. H.R. 860 would allow tax deductions based on fair market value up to $2,500, while leaving in place all tracking and enforcement safeguards.

Ronald Regan said, “We can’t help everyone, but everyone can help someone.” Granite Staters embrace that principle with their enthusiastic support of New Hampshire’s nonprofit groups. I’m committed to keeping Washington from changing that close relationship.

I look forward to reporting back to you in two weeks on the latest developments in Washington. In the meantime, if I can be of service to you, or if you want to share your thoughts, suggestions or concerns with me. Until next time, please know that I am always on your side and am actively fighting for New Hampshire’s interests in Washington.

U.S. Rep. Frank Guinta represents New Hampshire District 1 in Washington D.C. His column, “Frankly Speaking” can be read in the Merrimack Journal and Bedford Journal twice a month. He can be contacted in Washington at 1223 Longworth HOB, Washington, DC 20515 or by phone at 1-202-225-5456. His New Hampshire office is at 33 Lowell St., Manchester, NH 03101 or 641-9536. Guinta can also be reached via e-mail by visiting https://guinta.house.gov/contact-me. You can also follow what he’s doing 24/7 on Facebook at www.facebook.com/repfrankguinta and on Twitter at @RepFrankGuinta.