Non-profit, Mizzou leaders speak on effects of proposed tax bill
Non-profit organization leaders are voicing concern over the GOP’s proposed tax bill because of the possible lowering or removal of tax deductions for charitable donations.
Jim Sterk, Athletic Director at the University of Missouri, addressed the possible change in a message sent to Tiger Scholarship Fund (TSF) members. Sterk said tax deductions on donations to the fund are currently 80% tax deductible, but that under the new tax plan they “would no longer be permissible or greatly reduced.”
The fund currently makes up more than 25 percent of the athletic budget at MU, “so this tax proposal could have a severe impact on future department budgets,” Sterk said.
Executive Director of Heart of Missouri United Way Andrew Grabau says the change in the tax plan would force the non-profit organization to spend more time and resources searching for other revenue streams.
“We have a generous community,” Grabau said, “I just worry that the barriers that this tax plan could be creating would diminish the revenue that we need to deliver important services to our community.”
The current tax proposal would “decrease charitable giving by $13.1 billion,” according to a study by Indiana University that was commissioned by Independent Sector. For reference, $373 billion was donated in 2015, according to the Washington Post.
Nick Joos with the University of Missouri Athletic Department had no comment when asked if the department supports the GOP’s proposed tax plan, but did say they believe there are other incentives to donating to the TSF outside of the tax deduction.
