Pending Bill INCREASES Taxes on Foundations!

In 2023, U.S. foundations contributed over $103.5 billion to charitable causes, a cornerstone of global philanthropy, according to the National Philanthropic Trust. Yet, new policies from the Trump administration and Congress threaten this vital sector.

The House recently passed the “One, Big, Beautiful Bill,” now under Senate review, which proposes taxing foundation investment income at rates from 1.39% for foundations with assets under $50 million to 10% for those with $5 billion or more. Section 110011 of the bill also caps charitable deductions for high-income taxpayers and corporations, potentially reducing giving incentives.

The National Council of Nonprofits opposes the bill, stating it pulls resources from critical community services, increasing pressure on nonprofits and governments. Philanthropy Roundtable’s Christie Herrera echoed these concerns, arguing that diverting charitable funds to federal coffers contradicts principles of limited government and individual freedom.

These policies could reshape the landscape of U.S. philanthropy, challenging foundations’ ability to support communities effectively.

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