It takes a true bureaucrat to come up with the idea to charge taxes to charitable and non-profit organizations in an environment of high-employment [1] where the need for their services is higher and individual donations are down [2] concurrently with an economy forcing corporate donations down [3] as well. But of course, that is exactly what some localities and states are trying to get charities to do voluntarily without much success [4].
I understand that many charities and non-profits are as inefficient as the govt in delivering services but many are very good at what they do and the govt could never match their quality and speed. My personal favorite is the American Red Cross [5] which isn’t necessarily the poster child for low overhead but is an organization I trust will be the first on the ground in any disaster whether it be Katrina or September 11th.
Taxing these organizations will strike at the very heart of American culture and is without a doubt one of the worst ideas I have heard in quite some time.