I've been speaking for the past several years about the growth of the nonprofit sector and an inevitable response we may see from Congress. Today's New York Times has an article describing how the number of charitable organizations has grown more than 60 percent in the United States, to 1.1 million over the past decade.
The issue here is not the number - but the impact. As we grapple with real demands on the federal coffers, we need to remember that the $300 billion donated last year ALONE cost the federal government more than $50 billion in lost tax revenue.
"Especially during these tough economic times, it's troubling to hear we are increasing the number of these organizations at such a rapid pace," said Representative Xavier Becerra, a California Democrat. It's not free, and so we need to do something to make sure taxpayers are getting a big enough benefit in return."
Read the article here.
