Private Foundation Excise Tax
Issue
The private foundation excise tax, which private foundations pay on net investment income annually, is currently a flat rate of 1.39 percent. This percentage took effect in the 2020 tax year after legislation simplified the two-tiered system to a flat rate.
Council’s Policy Position
The Council on Foundations supports a strong philanthropic sector that helps to achieve the greater good. The Council opposes regulations and legislation that are overly burdensome or would harm the sector’s ability to thrive.
Related Legislation
Accelerating Charitable Efforts Act (H.R.6596/S.1981)
Summary: Modifies existing rules relating to donor advised funds (“DAFs”), creates an excise tax on sponsoring organizations, and makes certain changes to the rules governing private foundations.
Council's Action Alert
Additional Resources
