First Legislative Watch of 2018

1/24/2018

Welcome to the first Legislative Watch of the 2018 session! This series is meant to be an informative resource to keep you up to date with the current legislative session and the potential impact it has on our nonprofit sector.

“When you fix, you see life as broken. When you serve, you see life as whole. Fixing and helping may be the work of the ego, and service the work of the soul”

- Rachel Naomi Remen

In This Issue:

The Johnson Amendment

As of the 2017 Tax Reform bill, the Johnson amendment has been left alone, and no changes have been made. We will continue to keep an eye on this issue and keep you up to date with any changes that may occur.

Bill Tracker - Proposed State Bills

We are learning about proposed legislation that may impact our nonprofits in Idaho. The two bills referenced below are in draft stage and have not yet been printed or presented. We are fortunate to be kept informed about these possible bills and ask you to reach out if you hear of any legislation we should be aware of.

Idaho State Income Tax Credit for Certain Charitable Contributions (Bill 63-3029c)

The good news:

This would replace a previous bill (63-3029-C), simplifying a current code. It also expands the amount Idahoans can get credit for donating: from 50% of up to $100 to 100% of up to $500.
This can potentially open the choices Idahoans have to be able to donate to.
It also could open the credit to ALL 501(c)(3)'s in the state of Idaho instead of just the 25 that are currently eligible

The potential bad news:

This bill could create a limitation on the amount allowable as credit for the taxable year, meaning your credit expires after a certain amount of time.
There could be a tax revenue shortfall, although we are unable to estimate that at the moment.

If you have any questions regarding this potential bill, please contact Jason Casella at [email protected].

Election Transparency (Bill 67-660)

Keeping financial honesty in campaigning

What this bill is stating:

This proposed bill is intended to provide transparency for candidate campaigns both financially and governmentally.
It strives to provide clear definitions for all terms in local elections and to provide clarity for financial support as well as nominations. These definitions hope to bring more trust in the government on a state level.
This bill defines what contributions can and can’t be made towards a political candidate and contribution “caps” for certain corporations and businesses
All contributions and expenditures need to be properly recorded and filed with the political treasurer for each candidate
Electioneering communication needs to be transparent - even if donations to nonprofit weren’t intended for the election - potentially forcing charities to reveal their donors or to silence themselves in order to avoid revealing their donors.

Tax Reform - Is the Sky Truly Falling?

There is a great worry within our sector that the new tax reform will decrease the number of donations given to nonprofits. The optimistic way to view this issue is: people have always and will always give to sources they are passionate about. We desire to be a part of something bigger than ourselves, which nonprofits provide for us. Not everyone can work for a nonprofit, but everyone can give (Little, 2018)

The past tells us that people will continue to donate even if tax incentives are not there. As Amy mentions in her article, “history tells us that nonprofits will not see a decrease in giving” (Little, 2018). Read more about charitable giving here.

Your mission, vision, and values matter to your community and to the people you serve. Do not forget the impact your organization has made time and time again. That won’t disappear, and that impact won’t lessen by any means. Believe in the work you do, you have amazing things to show for it.

For more clarification and peace of mind on the tax reform click here for Claire Axelrad’s article on “New Tax Law: How Worried Should Your Nonprofit Be?”

What to Expect in 2018

The National Council of Nonprofits shared their “Hot topics in 2017 to help you plan for what’s ahead in 2018” in hopes to stop potential obstacles in 2018. You can find that list here explaining how these trends with effect grantmakers, board members, as well as charitable nonprofits.

The Idaho Nonprofit Center represents the interests of our state’s 6,000+ registered charitable nonprofit organizations.

We are an association of forward-looking nonprofit leaders who come together to share knowledge, solve problems, pursue common interests, and serve the public good.

Brooke Damico

Legislative Watch is written by Brooke Damico, a public policy student at Boise State University.

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