Seattle Children’s CEO warns WA’s income tax puts philanthropy at risk

Dr. Christopher Longhurst, CEO of Seattle Children’s, published an op ed in the Puget Sound Business Journal this weekend warning that Washington’s new income tax will be a death sentence for philanthropic giving in the state

Opinion: WA’s new income tax puts philanthropy at risk.

Longhurst points to what donors make possible at Seattle Children’s: more than 32,000 donors gave a record $253 million last year, 85% of gifts were under $100, and donors contributed $23 million specifically to cover uncompensated care. He then explains why the income tax’s $100,000 cap on charitable deductions could devastate those contributions:

“Capping the state charitable deduction at $100,000 in Washington creates a strong disincentive for high-impact philanthropy, ultimately hurting the communities and organizations that rely on charitable support.”

“Research shows that a 1% increase in the net cost of giving correlates to a 4% decline in total philanthropic contributions.”

He also describes how the law’s residency rules compound the problem further:

“I’ve been told that many tax advisers are advising Seattle Children’s donors who have established residency elsewhere that the ‘gold standard’ for severing ties to the state is to cut all of them, including charitable giving, nonprofit board service and other civic relationships that have nothing to do with the tax itself.”

And he is clear about the stakes for organizations like his:

“Simply put, we believe this cap will make it harder for Seattle Children’s and many other nonprofit organizations across our community to fully achieve our missions and provide the services that are so vital to members of our community.”

Seattle Children’s is not alone. Our new ad, “Repeal the Income Tax on Charities,” tells the story from another perspective, that of someone who has benefited directly from charitable giving.

Marissa knows how fast everything can slip away. After an accident left her addicted and trafficked on the streets, a local charity helped her get back on her feet, and now she helps other women do the same. But that program and others like it are now also at risk, as Olympia’s income tax drives away the very donors who support these organizations.

We also spoke to Kristine Moreland, the executive director of The More We Love, which helps women and children who face homelessness, domestic violence, and so much more. Charities like hers are also under threat of losing their funding because of Olympia’s destructive income tax.

Longhurst and Marissa showcase just how much is at stake for our philanthropic community if Washington’s charity tax isn’t repealed in November.