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Independent Sector Considers Stand on Raising Taxes

November 11, 2008, 2:12 pm

Members of the nonprofit world are weighing how to ask for more federal money from the Democrat-controlled Congress and White House in 2009.

Specifically, Independent Sector has drafted a set of priorities for the next president and Congress that includes asking for higher taxes to maintain spending for nonprofit organizations and for social services, such as food stamps and health care for low-wage earners.

The extra money is necessary as the economic crisis increases demand for charitable services while at the same time current tax revenues are drying up, the group argues.

But the choice to ask for higher taxes remains controversial among nonprofit service providers and the individual donors and foundations that give them money.

“As essential as government revenues are to the work of so many in this community, taxation and fiscal policy are not something on which the nonprofit sector has had a collective, vocal position,” said Diana Aviv, president of Independent Sector, which wrapped up its annual meeting today in Philadelphia.

While Ms. Aviv and others at the conference urged members to speak up in favor of higher taxes, some attendees were reluctant.

William C. Daroff, vice president for public policy at United Jewish Communities, said his donors support the organization for the work it does, not “because of specific policy positions they feel are outside or beyond the scope of our mission.”

“There are many ways to increase revenue, and many of our key stakeholders would prefer that we not take out the Tax Code and decide who the winners and losers are,” he said.

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