The election victory of Donald Trump and Republican control of both the House and Senate could spell financial trouble for many nonprofits, the Chronicle of Philanthropy reports.
An analysis by the independent Tax Policy Center released last week claimed that charitable giving could fall by as much as 9 percent, or about $26.1 billion, in 2017. Although global financial markets were up the day after the election, any significant drop in markets over the next few weeks could affect wealthy donors' confidence and cause them to cut back on their year-end giving, said Patrick Rooney, professor of economics and philanthropic studies at the Lilly Family School of Philanthropy at Indiana University-Purdue University Indianapolis.
Indeed, for many observers, Trump's victory represents long-term economic uncertainty, as he has called for the rewriting or scrapping of various trade deals and tariffs on foreign goods. If the president-elect follows through on those and other pledges, said Rooney, the ensuing disruption to the economy also could hurt charitable giving. Trump also has proposed substantial tax cuts for wealthy households, which some experts say would lead to a drop in giving, though it is difficult to determine the effect of such cuts over the long term. Moreover, with Republican majorities in both the House and Senate, the likely repeal of the Affordable Care Act could mean that millions of Americans lose their healthcare coverage.
"We see ourselves as advancing and protecting the public interest of our communities," said Nancy Berlin, policy director at the California Association of Nonprofits. "I think we have just moved into a time where that is going to be more difficult."