The Council Opposes Tax Increase That Would Hurt Local Nonprofits and Communities

Congress should protect philanthropy’s ability to support causes from food pantries to disaster relief.

Today, House Republicans released the updated text of a tax package, which includes a proposed increase in the excise tax on net investment income for private foundations. In addition to a congressional letter from the Council on Foundations, Independent Sector, National Council on Nonprofits, and United Philanthropy Forum, the following statement is from Kathleen Enright, President and CEO of the Council on Foundations, opposing the proposed increase. 

We urge Congress to protect — not penalize — the philanthropic institutions working every day to fill gaps and fuel opportunity in communities across America. 

Increasing taxes on private foundations means fewer dollars to charitable organizations, from food pantries to disaster relief groups. As federal funding decreases and the needs in communities continue to grow, Congress should be making it easier for private donors to support community needs, not harder. 

Ultimately, this tax will hurt those who can least afford it: the people and places that rely on charitable support to weather today’s challenges and prepare for tomorrow. That’s because aggressively taxing charitable foundations doesn’t just restrict today’s giving — it also reduces the resources available to support local organizations through future crises.