Action Alert: Donors Forum encourages you to call your Representatives and Senators to inform them of the benefits of providing tax credits to nonprofit entities and to secure their inclusion in future legislation.

Background: The White House proposal for a $33 billion job-creation bill acknowledges nonprofits as employers and significant economic drivers by providing tax credits to nonprofits, as it does for its for-profit counterparts. For more information, please view the official White House fact sheet by clicking here.

The main component's of the President's proposal was presented in a White House call and summarized by the National Council of Nonprofits:

1. Nonprofits of any size would get a $5,000 tax credit (applied to withholding taxes) for every new employee hired in 2010, retroactive to January, 2010.
2. Nonprofits of any size that increase the hours or wages of employees making less than $106,800 can be reimbursed for the additional Social Security taxes incurred. The maximum benefit for any one nonprofit would be capped at $500,000.

While President Obama's proposal is beneficial to the nonprofit community, we must ensure that similar language is included in legislation crafted by Congress.

For additional policy updates from Donors Forum, click here.

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