November 25, 2012
By Sherri Welch
The cliff refers to the combination of tax increases and budget cuts hitting the country concurrently on Jan. 1.
Legislators are also talking about removing some of the benefits to charities in the tax code, said Kyle Caldwell, president of the Michigan Nonprofit Association. One example: eliminating or capping the charitable deduction, which would follow the elimination of the Michigan charitable tax credits at the end of 2011.
"In a nutshell, the fiscal cliff for the budget means a leap over the edge," Caldwell said. "But for many nonprofits, these spending cuts and less disposable income really means we're standing at the edge of a gravesite."
Much of what nonprofits do is providing the social safety net, Caldwell said: "People live or die by some of the services we provide."