The Hebrew Home of Greater Washington, a long-term-care provider in Rockville, Md., is less dependent than many other not-for-profit facilities on charitable contributions. However, if a flat tax were implemented, the effect still would be significant, said Shulamith Weisman, director of development.
In 1995, the Hebrew Home received about $1.5 million of its $30 million budget-or about 5%-from charitable contributions. The national average, according to the American Association of Homes and Services for the Aging, was nearly 7.5% in 1991, the last year for which statistics are available.
Furthermore, the group has financed projects using tax-exempt bonds, an exemption that could be eliminated by flat-tax proposals.
Hebrew Home partly financed an $18 million to $20 million senior assisted- and independent-living project through the sale of $16.9 million in tax-exempt bonds by the Montgomery County (Md.) Housing Opportunities Commission, said Jill Daniels, chief financial officer. The project, called Ring House, opened in 1989.
"I would guess there is a portion of the population that is motivated by tax exemptions," Daniels said. "We might possibly lose that population of givers."
Weisman said things would be difficult for most not-for-profit providers if there were a flat tax and no incentive for some sort of charitable contributions.
"I think we would see a tremendous loss." Weisman said.