The Tax Cuts and Jobs Act (TCJA) of 2017 introduced significant reforms to the U.S. tax code, several of which are set to expire Dec. 31, 2025. These expirations could have substantial repercussions for nonprofits and human services organizations, jeopardizing funding streams, workforce stability, and service delivery at a time when demand for nonprofit services remains high. Addressing these challenges through advocacy is essential to safeguard the sector’s ability to serve communities effectively.

Key Provisions Set to Expire and Their Impact

• Charitable Contributions Deduction: The TCJA temporarily increased the adjusted gross income (AGI) limit for cash donations to public charities from 50% to 60%. Expiration of this provision could discourage large donations from high-income taxpayers, directly affecting funding for nonprofits.
• Standard Deduction: Nearly doubling the standard deduction simplified tax filing for many Americans; however, it drastically reduced the number of taxpayers itemizing deductions and contributed to a $252 billion decline in charitable contributions between 2018 and 2021. If the standard deduction reverts to pre-TCJA levels, nonprofits may face continued uncertainty in donation levels.
• Child Tax Credit (CTC): This credit was expanded under the TCJA to provide $2,000 per qualifying child, with a refundable portion adjusted for inflation ($1,700 in 2024). Its expiration could push millions of children back into poverty, increasing pressure on nonprofits to fill service gaps for struggling families.
• Employer Credit for Paid Family and Medical Leave: This credit incentivized employers, including nonprofits, to provide paid leave for employees. Losing this credit could make it harder for nonprofits to offer leave benefits.
• Opportunity Zones: These zones encourage investments in economically disadvantaged communities through tax benefits. Expiration could slow economic development and reduce critical funding opportunities for nonprofits engaged in community revitalization.
• Volunteer Support: Volunteerism remains a cornerstone of nonprofit operations. Current provisions limiting charitable mileage rates and taxing volunteer awards are barriers that could worsen if not addressed.

Impacts on Human Service Organizations and Communities

• Funding Shortfalls: Without incentives like the AGI limit for cash donations or deductions for non-itemizers, donor engagement could decline, straining budgets and limiting capacity.
• Rising Community Needs: Expiration of credits like the CTC could leave families with fewer resources, increasing reliance on human services organizations for food, housing, and other essential services.
• Workforce Challenges: Nonprofits, already struggling with recruitment and retention, may find it harder to offer competitive benefits without access to paid leave tax credits.
• Economic Uncertainty: Opportunity Zone funding has been vital in revitalizing underserved areas. Without it, nonprofits could lose valuable partners and financial resources for community development initiatives.

Advocacy Priorities for Human Service Organizations

• Protect and Enhance Charitable Giving Incentives
  • Advocate for bipartisan legislation, such as the Charitable Act, to restore a deduction for non-itemizers and make AGI limits for cash contributions permanent.
  • Push for expanded incentives to encourage donations, particularly during times of economic uncertainty.
• Support Families Through Economic Relief
  • Advocate for a fully refundable and expanded Child Tax Credit to combat child poverty, enhance economic stability, and decrease reliance on nonprofits.
  • Promote policies ensuring Opportunity Zone programs, which prioritize community-based development that benefits nonprofits and residents alike.
• Sustain Human Service & Nonprofit Workforce Capacity
  • Support the extension or replacement of the employer tax credit for paid family and medical leave to ensure nonprofit employees have access to competitive benefits.
  • Advocate for raising the charitable mileage reimbursement rate and removing taxes on volunteer awards to boost engagement and support.
• Strengthen Human Service & Nonprofit Infrastructure
  • Push for multiyear grants and streamlined funding processes to provide financial stability for nonprofits.
  • Advocate for greater flexibility in government contracts to reduce administrative burdens and allow nonprofits to focus on service delivery.

Download this policy brief as a PDF.

Human services organizations are critical for supporting the health and well-being of children, families, and communities; however, they face unprecedented financial strain from rising liability insurance costs. Driven by climate risks, increasing demand for services, and workforce shortages, these costs threaten the stability of nonprofits at a time when their work is needed most. Without targeted policy interventions, many organizations may struggle to maintain essential protections and serve their communities effectively.

The Problem: Escalating Costs and Risks

Human service organizations operate in a uniquely challenging environment:

• High-Risk Services: Organizations working in foster care, mental health, and elder services often deal with vulnerable populations, leading to heightened liability claims. These claims, while necessary for justice, can financially devastate organizations.
• Rising Demand: The growing need for mental health services, social programs, and elder care is straining resources and increasing the risk of incidents that result in claims.
• Economic Pressures: Inflation and rising costs for medical care, legal fees, and other expenses is further driving up insurance premiums.
• Staffing Shortages: Workforce gaps stretch agencies thin, increasing the likelihood of errors or incidents that lead to liability exposure.

Policy Solutions: Advocacy Priorities for Change

To ensure liability insurance is accessible and affordable for human service organizations, Social Current is advancing critical advocacy solutions:

• Public or Captive Liability Insurance Fund: Participate in national efforts to explore the creation of a public or captive liability insurance fund specifically for child welfare organizations and other “high-risk” nonprofits. Such a fund would reduce insurance costs and mitigate risks, ensuring organizations can continue to provide vital services.
• Federal Legislation for Affordable Coverage: Advocate for federal laws requiring states to provide affordable liability insurance options for human services organizations working with high-risk populations, including foster care and mental health providers. This mandate would address these nonprofits’ unique challenges, ensuring they have the coverage needed to operate safely.
• Shared Liability Insurance Pools: Encourage policies that facilitate shared insurance pools for nonprofits, enabling organizations to access group coverage at significantly reduced rates. These pools would foster collaboration and create economies of scale, making liability insurance more manageable for all participants.

Call to Action: Securing the Future of Human Services

The rising costs of liability insurance require bold and innovative solutions. Social Current calls on policymakers, nonprofit leaders, and insurers to collaborate on reforms that stabilize insurance markets and protect human service organizations from undue financial burden. By establishing public insurance funds, advancing federal protections, and supporting shared coverage models, we can empower nonprofits to continue serving their communities.

Download this policy brief as a PDF.

Social Current partnered with network organizations and NonprofitVOTE to provide updated examples from the field, along with the latest resources containing guidance on voter and civic engagement in the Strategies for Mobilizing Voters: A Toolkit for Nonprofit Community-Based Organizations. This toolkit includes network stories, coupled with related tools and tips for executing such practices at your organizations.

This is the final evaluation report for Child Safety Forward, a four-year demonstration initiative that engaged five sites across the U.S. in research, planning, and implementation around strategies aimed at reducing child injury and fatality from abuse and neglect. The initiative, funded by the Department of Justice (DOJ) and with technical assistance led by Social Current, was launched in October 2019 by the DOJ’s Office for Victims of Crime.

Demonstration sites conducted retrospective reviews of child fatality data and/or collected additional community-level and system-level data to inform their implementation plans. This report summarizes the key strategies and learnings from each site:

• St. Francis Hospital in Hartford, Connecticut
• Cook County Health in Illinois
• Indiana Department of Health
• Michigan Department of Health and Human Services
• Sacramento County’s Child Abuse Prevention Council in California

In addition, the report delves into key lessons learned and takeaways from the initiative. Recommendations are provided for funders, system leaders, practitioners, and parents and community members for each of five recommended strategies:

• Communications and Framing
• Data Culture and Infrastructure
• Developmental Evaluation
• Equity, Power, and Parent Engagement
• Prioritizing Sustainability

In October 2019, the U.S. Department of Justice, Office of Justice Programs, Office for Victims of Crime launched Child Safety Forward (CSF), a three-year demonstration initiative to develop multidisciplinary strategies and responses to address serious or near-death injuries resulting from child abuse or neglect and to reduce the number of child fatalities.1 The efforts were intended to produce models and practices that are responsive to a 21st-Century Child Welfare System as envisioned by the federal Commission to Eliminate Child Abuse and Neglect Fatalities.

Five demonstration sites participated in CSF, with technical assistance led by Social Current. The five participation sites in this initiative are:

• St. Francis Hospital in Hartford, Connecticut
• Cook County Health in Illinois
• Indiana Department of Health
• Michigan Department of Health and Human Services
• California’s Child Abuse Prevention Council of Sacramento County

As part of the final implementation study, each site identified a practice or policy change advanced through their work with CSF for a dialogue on how to impact systems change. The dialogue was facilitated by a team of two to three external evaluators with approximately five to seven local partners involved in the implementation of the policy or practice. These briefs delve into the design of the site’s policy or practice and suggests recommendations for similar initiatives based on the site’s experiences and lessons learned.

Disclaimer: This product was supported by cooperative agreement number 2019-V3-GX-K005, awarded by the Office for Victims of Crime, Office of Justice Programs, U.S. Department of Justice. The opinions, findings, and conclusions or recommendations expressed in this product are those of the contributors and do not necessarily represent the official position or policies of the U.S. Department of Justice.

Social Current partnered with network organizations and NonprofitVOTE to provide examples from the field, along with resources containing guidance on voter and civic engagement in the Strategies for Mobilizing Voters: A Toolkit for Nonprofit Community-Based Organizations. This toolkit includes network stories, coupled with related tools and tips for executing such practices at your organizations.

For the updated toolkit, Social Current is searching for new stories from network organizations that have run successful voter engagement campaigns. If your organization has led or participated in any voter engagement activities, either in the workplace or the community, please reach out to Derry Kiernan, the field mobilization and policy manager.

We’d love to feature you in the new toolkit, which will be a valuable resource for the network and the broader nonprofit community as we head into elections this fall and next year.