“Historic Opportunity For Social Investment”
The Nonprofit Alliance of Bermuda released a document entitled “Bermuda Corporate Income Tax and the Historic Opportunity for Social Investment.”
A spokesperson said, “The Nonprofit Alliance of Bermuda has publicly released its “Bermuda Corporate Income Tax and the Historic Opportunity for Social Investment” white paper. The paper was submitted to Premier and the Minister of Finance, the Hon E. David Burt, JP, MP as well as members of the Tax Reform Commission in June, with a goal to advocate for greater investment in Bermuda’s Third Sector.
“The paper highlights that Bermuda, with its noteworthy contrast between wealth and vulnerability, faces a unique and exciting opportunity as it introduces the Corporate Income Tax in 2025. It highlights that despite existing social supports, there is a consistent trend towards greater disparities in health, education and economic opportunity on the island.
“The paper argues that underinvestment in social supports and services has left nonprofits to fill critical gaps, while they struggle to meet a growing and unsustainable level of need. Analysis shows that Bermuda invests 50% less than the Caribbean and 76% less than the OECD [Organization for Economic Co-operation and Development] in our social system. The Nonprofit Alliance believes this enables an inequitable society where the disparity between the affluent and the underserved — or “the Two Bermudas” — persists. The introduction of the Corporate Income Tax is thus a pivotal opportunity to make systemic shifts through deeper social investment, including greater funding for Bermuda’s vital nonprofits.”
Nonprofit Alliance Executive Director Dr Nicola Paugh stated, “Firstly, we would like to acknowledge the recent tragic events which have occurred in our small island community. We know our nonprofit and social service partners are on the frontlines responding to so many who will need support at this time. We stand with our community as we collectively navigate how to move forward. These events serve as a reminder of the importance of addressing Bermuda’s social context more systemically. For the nonprofit sector and the people they serve, Bermuda feels in crisis.
“For a country of so much wealth, we have problematic health and social issues, accompanied by widening income inequality. There is an unsustainable level of need falling on the shoulders of nonprofits. Additionally, there is disproportionate and distracting focus on the belief that there are too many charities and too much service duplication, and not enough attention paid to the positive impact and outcomes nonprofits are having with the amount of resources they have. Furthermore, the expectation for nonprofits to be well run businesses while managing on shoestring budgets with low paid or under-skilled staff is unreasonable.
“It is the perspective of the Nonprofit Alliance that there is not enough social investment in Bermuda, and in the long run this costs far more to society. This is why, based on our research, we believe there is such an exciting and unique opportunity for the Government when considering how to allocate any potential surplus tax revenues generated as a result of the Corporate Income Tax. We hope this opportunity will not be missed, and that this paper provides a framework and call to action for how we may work to prevent more tragedy in our small island home.”
The spokesperson said, “The Nonprofit Alliance of Bermuda is a registered charity that is dedicated to strengthening, unifying, and championing nonprofits in Bermuda. To learn more, please visit www.nonprofitalliance.bm.”
The full Nonprofit Alliance’s White Paper follows below [PDF here]:
