Last week, a New York Times article discussed a trend occurring nationwide, proposals to charge nonprofits fees as state and local governments search for revenue. The prospect of having to pay new taxes could have major consequences for nonprofit budgets. Some of the various suggestions to increase revenue include subjecting charities to sales taxes, and revoking property tax exemptions. For example, the Kansas House Tax Committee was considering removing sales tax exemptions for recreational activities, fundraising events, nonprofit charitable groups and religious organizations. In Hawaii, the Honolulu City Council is considering caps on the value of property tax exemptions for nonprofit property.

Nonprofits retort that such efforts would do more harm than good, and force many to cut back on services, such as mental health and emergency foster care. Like governments, charities are also facing declines in revenue.

Some charity leaders say that because so many local governments are behind on payments due to nonprofits for the social services they provide to communities, charities are actually giving a free ride to states and cities. "We’re effectively providing interest-free loans to state governments, which have been very slow to pay what they owe us, and now they're asking us to pay more,' said Lisa Maruyama, chief executive of the Hawaii Alliance of Nonprofit Organizations.'"