Wednesday, July 29, 2020

Commentary in Barron's highlights plight of ACS

Author supports increase in federal charitable tax deduction to increase donations to non-profits

commentary by a professor at Duke and Columbia universities focuses on the financial crisis in which non-profits find themselves, including ACS, due to COVID-19.

Titled "Hard-Hit Nonprofits Face Rising Demand, Less Funding," the commentary by Stanley S. Litow, says:

"On a national level, the American Cancer Society has seen a spike in demand for their services, which include a hotline and advice for cancer victims,concurrent with a steep decline in funding. I recently interviewed CEO Gary Reedy, who said they have already laid off roughly 1,000 people, about 25% of their workforce. He expects a revenue decline of close to $200 million. These cuts, he said, would impact their ability to continue their significant investment in cancer research, which totaled nearly $150 million in 2018."

The author also notes that: "A June survey by the Independent Sector showed that 83% of these organizations have already seen a marked reduction in their revenue. Nearly two-thirds of 125 agencies surveyed by the Human Services Council of New York believe they will have to reduce services to those most in need as a result of budget shortfalls, and 70% expect to be laying off staff. State and local budget shortfalls will only increase the risks."

Litow, who also serves as IBM’s vice president of Corporate Citizenship & Corporate Affairs and president of IBM’s Foundation, advocates for increased philanthropic support in the form of more generous matching gift programs, incentives for skill-based volunteering, expanding no-interest lending, and an increase in the federal charitable tax deduction to boost donations.

*Shared from MySocietySource and read the full commentary.

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