Association for Public Policy Analysis & Management

Changes in federal tax and budgetary policy under consideration by the Trump administration and the Republican congressional majority are likely to have significant effects on the nonprofit sector. These changes include: (1) major modifications in the income tax; and (2) a host of budgetary changes that would cut funding to nonprofit organizations, especially in the arts, education, and health. The proposed paper will draw on simulations from the Urban-Brookings Joint Center on Tax Policy supplemented by financial data on nonprofits from IRS 990 data to estimate not only how such changes would affect individual giving, but more generally the finances of different types of nonprofit organizations.