CFO Intelligence Magazine – Fall 2022
Tani Fukui, Ph.D.
Macroeconomist, Director, MetLife Investment Management
For more than 70 years, The Nature Conservancy has been addressing climate change, land-, water- and ocean-conservation, sustainability, and related issues across the globe. Many not-for profit organizations solicit donors by appealing to their sense of environmental justice. But Arlington, Va.-based TNC also uses a variety of financial tools such as issuing green bonds or having its in-house impact investing team, NatureVest engage contributors looking for market-based financial returns on their investments
LEADING THROUGH CHANGES
During his tenure, TNC has weathered changes like the 2017 federal Tax Cuts and Jobs Act — many of the changes were effective as of January 2018 — which eliminated or restricted many itemized deductions while increasing the standard deduction, effectively reducing the number of taxpayers who itemize deductions.
“When the 2017 tax act passed, we were not overly concerned about our high-income donors, but there was some initial concern about how it might have affected lower income donors since the increased standard deduction diminished the tax deduction value of their donation,” he says. “But in fact, people are more attracted to our message, and there was no drop-off in contributions post-TCJA.”
The Nature Conservancy posted $607.7 million of dues and contributions during the fiscal year ended June 30, 2017 — the last before the TCJA took effect. For the most recent fiscal year ended June 30, 2021, TNC posted $808.3 million of dues and contributions.