PIX11 News: Brooklyn Nonprofits Face Tax Threats, Funding At Risk

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PUBLISHED IN: PIX11 NEWS

A Brooklyn-based organization, Brooklyn Org, dedicated to supporting local nonprofits, is raising the alarm about a proposed federal rule that could take away critical tax benefits from charitable groups.

Leaders say the change could make it much harder for nonprofits to secure the funding they need to provide essential services to the community every day.

The concern comes as President Donald Trump considers an executive order that would impact the special tax status of certain nonprofit organizations, known as 501(c)(3)s, which are currently exempt from federal income tax. If enacted, the order could have widespread effects on organizations that rely on this status to attract donations and grants.

Brooklyn Org has invested more than $130 million in grants to grassroots, community-led groups, focusing on racial justice and community development. Its president and CEO, Jocelynne Rainey, described the proposal as “chilling,” emphasizing that the consequences would not only affect nonprofits but also the many people who depend on their services for basic needs.

“I’m really concerned not only for the nonprofits, but I’m concerned for the communities that rely on their services every day to survive,” she said.

The proposed changes have sparked concern among other nonprofit leaders and public officials, including U.S. Sen. Chuck Schumer, who warned that the order could freeze funding and even label some organizations as threats.

Even a temporary halt in funding, Rainey says, could have a significant impact on the ability of nonprofits to serve Brooklyn’s most vulnerable residents.

As the administration continues to debate the details of the executive order, community organizations like Brooklyn Org and their supporters are watching closely, worried about the future of local services that many families rely on.