Poll: Voters support continued tax-exempt status for nonprofits

A new poll released by the Community Impact Coalition (CIC) reveals broad and bipartisan support for maintaining the tax-exempt status of nonprofit organizations, reinforcing the vital role these organizations play in American communities and underscoring political risk for lawmakers who propose removing such protections. 

The poll was conducted by Cygnal, a multi-mode polling and public affairs firm. The poll had a sample size of 1,500 likely voters surveyed from April 16 to 21, 2025.  

Key findings include: 

• A strong majority (57%) of voters support nonprofits having tax-exempt status rather than being taxed like businesses or individuals. 

• An overwhelming 82% of voters consider nonprofit tax-exempt status important, with just 12% saying it is unimportant. 

• Nonprofits enjoy strong favorability across the electorate (68% favorable / 18% unfavorable), including among Republicans (62% favorable / 22% unfavorable). 

• Among Republican voters, 80% say tax-exempt status is important; that number rises to 82% in Extremely Red districts. 

• Conservative voters view nonprofits favorably by more than a 2:1 margin, and more than three-quarters believe their tax-exempt status is important. 

• A striking 53% of voters say they would be less likely to vote for their Member of Congress if they supported eliminating tax-exempt status for nonprofits. This includes majorities in Very Red (55%) districts. 

“The data is crystal clear: Americans—across party lines—support nonprofits and the tax policies that enable them to deliver essential services to local communities all across America,” Steve Caldeira, president and CEO of the Household & Commercial Products Association and co-chair of the Community Impact Coalition, said in a statement. “Any proposal to revoke tax-exempt status is not only ill-advised policy—it’s bad politics.” 

When asked about the consequences of taxing nonprofits, voters expressed deep concern: 

• 62% worry about reduced services for people in need 

• 56% are concerned about higher costs for healthcare, education, and childcare 

• 55% cite the potential loss of community programs and resources 

• 49% fear reduced charitable giving and volunteerism 

The leading reason cited for protecting nonprofit tax exemption is the fear that if nonprofits are taxed, critical services such as hospitals, food banks, and educational programs could be forced to cut back or raise fees, placing greater costs on families, workers, and local businesses.