Challenges & Opportunities for Charities after the 2017 Tax Cuts and Jobs ActPosted: May 21, 2018 Filed under: Nonprofits and Philanthropy, Taxes and Budget Comments Off on Challenges & Opportunities for Charities after the 2017 Tax Cuts and Jobs Act
Eugene Steuerle, Richard Fisher Chair at the Urban Institute and co-founder of the Urban-Brookings Tax Policy Center gave this presentation at the ABA Tax Meetings Exempt Organizations Committee luncheon in May 2018. A full transcript is available at taxpolicycenter.org.
“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.”
I’d like to refine this idea, probably incorrectly attributed to Winston Churchill, with the wisdom of my teachers, by distinguishing among luck, serendipity, and misfortune. To me, luck—good or bad— results from random factors beyond our control. Serendipity reflects the good things more likely to happen when we put ourselves along a path with a higher-than-average probability of success, while misfortune happens, often unnecessarily, when we bet against a house that has stacked the odds in its favor.
I realize that the lexicographers may not fully agree with my definitions.
Chauncey M. Depew told the story that Noah’s wife one day was caught kissing the cook.
“‘Noah,’ she exclaimed, ‘I’m surprised!’
“‘Madam,’ he replied, ‘you have not studied carefully our glorious language. It is I who am surprised. You are astounded.’”
Are charities on a serendipitous path, where a virtuous cycle of improvement is more likely, or a path with greater odds of a vicious cycle of misfortune? I suggest that the treatment of charities in last year’s tax reform may reflect a path if not misfortunate at least less serendipitous than possible.
In any case, I want to spend most of this talk discussing why the current tax law is unsustainable and sets in motion forces for further reform. I then set out a bold but difficult agenda worth pursuing as we venture down that still-to-be-determined path.
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