Nov 30, 2017 3 min read

These are days of both anticipation and dread for the country’s charities.

The economy is good, consumer spending has posted its largest gains since 2009, and the weeks between Thanksgiving and New Year’s Eve are typically when Americans are most inclined to toss some loose change in a Salvation Army red kettle, or write a check to a charity that aligns with their concerns or needs. It’s helpful they can also claim a tax write-off, particularly for larger donations.

Here’s the potential bad news, at least nationally: The leaders of many charitable organizations are worried the Republican tax reform plans under consideration on Capitol Hill could stanch the flow of money to them. Both the plan that was approved by the House and the one being considered in the Senate would raise the standard deduction for U.S. households. While this would make things simpler for many tax filers, it would likely result in fewer taxpayers itemizing their deductions. That could make charitable deductions less attractive.

How big a blow could it be? According to the Lilly School of Philanthropy at the University of Indiana, it could lead to a loss of $13 billion in charitable giving in 2018.

Now, some better news, at least locally: The Washington County Community Foundation is launching a new grants program that will help nonprofits in the area build their coffers.

The grants will be administered through its Community CARE Fund, and up to $1 million will be issued in what are called “capacity building” grants, which are meant to support the operations of the charities themselves. According to Betsie Trew, the president and CEO of the Washington County Community Foundation, “When capacity building is successful, it strengthens a charity’s ability to fulfill its mission over time, and enhances the charity’s ability to have a positive impact on individuals and our community.”

The Community Foundation believes the grant program will be particularly beneficial to smaller charities that operate throughout Washington County. Trew pointed out that of the 100 charities that took part in the foundation’s day of giving, a full 40 percent have operating budgets of less than $100,000 every year, and 33 percent have net assets of less than $100,000.

Trew explained, “A capacity building grant could enable these smaller charities to reach the next level of operational, programmatic, financial or organizational maturity.” She also said that charities of any size operating in Washington County can apply for the grants.

If any smaller charities need an example of how they can grow, they need look no further than the Washington County Community Foundation itself. When it was introduced in 1995, it ended that year with $5,000 in assets.

Now, it has $35 million.

The United States is a rich country, but we’re not the most charitable. According to the index by the Charities Aid Foundation that tabulates volunteerism, donating money and helping strangers, the U.S. was in fifth place this year, behind Myanmar, Indonesia, Kenya and New Zealand.

This is an area where America should strive to be No. 1.