Standing side-by-side with nonprofits and charities – a sector that employs tens of thousands of Vermonters and accounts for billions of dollars in economic activity every year – Governor Peter Shumlin this morning reiterated his opposition to plans being considered in the Legislature to limit charitable giving.
“Limiting the ability of Vermonters to give to charities is not just a bad idea, it would be terrible economic policy,” Gov. Shumlin said. “Charities and non-profits in this state not only provide services to our neighbors in need, they employ our neighbors, drive economic activity, and contribute greatly to our state’s economic success.”
According to Common Good Vermont, a group that supports nonprofits in the state:
- Nonprofits employone in seven Vermont workers, or over 40,000 individuals.
- Vermont nonprofits contribute$5.7 billionper year to the economy through wages paid, retail and wholesale purchases, and professional service contracts. This contribution is equivalent to nearly 20 percent of the State’s gross state product.
- Vermont nonprofits paid over$1.9 billioninwages, which translates into an estimated$33.7 million of personal income taxrevenue for Vermont’s state and local governments and over $333.8 millioninfederal tax revenues.
The Governor was joined by a number of charities and non-profits to speak out against any limits on charitable giving in Vermont. Those attending included Lauren Glenn Davitian from Common Good Vermont, John Sayles from the Vermont Foodbank, John Killacky from the Flynn Center for the Arts, Martha Maksym from the United Way of Chittenden County, Bob Bick from the Howard Center, Dan Osman from Camp Daybreak, and others.
The Governor also noted that limiting charitable giving will adversely affect seniors, who disproportionately give to Vermont nonprofits. Seniors make up only 20 percent of those who itemize their taxes, yet they take 44 percent of the deductions for charitable giving.
“There is no doubt that this is a difficult budget year,” Gov. Shumlin said. “But there are better ways to spend sustainably and close our budget gap than by limiting Vermonters incentives to give to important causes that assist people here and abroad and help to sustain our economy.”