2025 Tax Bill Talking Points
We're asking you to reach out to your Member of Congress to voice concerns with provisions in the tax bill that could impact philanthropy. You may only have a couple of minutes to make your point as staff will be receiving similar requests and information from other groups impacted by the bill and they will also be preparing for the mark-up. It's important to convey your message clearly and plainly, highlighting what a reduction in grantmaking to nonprofits looks like for the foundation and for the community you serve. Use past successes, projects, or grants as examples of what you won't be able to do in the future. Importantly, when possible be sure you are highlighting issues and priorities important to that Congressperson. You are demonstrating this isn't just hypothetical, but that these changes will have a direct impact on the district and state they serve.
Here are some talking points for the 2025 tax reform debate. We will update this with talking points for other provisions that impact the sector.
Overall Nonprofit Sector
Now more than ever, it is essential that Congress do what it can to support and strengthen philanthropy so that foundations can continue to provide critical aid to nonprofits in communities across the country.
- At a time when federal funding is uncertain, nonprofits rely on private donors (including both individuals and institutional donors like foundations) to provide lifesaving investments that help support rural health centers and provide food for the poorest Americans.
- Policies that hurt foundations, or reduce incentives for charitable giving, directly impact the hundreds of billions of dollars they provide to community nonprofits every year. That directly translates to fewer dollars going to soup kitchens, houses of faith, animal shelters, and disaster response.
- Charitable giving represents the best of American generosity. It is essential that Congress not impede this important community resource.
Private Foundation Excise Tax
We oppose an increased excise tax on private foundations. This increase threatens to restrict grantmaking and diminish vital funding for communities in need.
- Private philanthropy supports vital programs in every state and district in the country—programs like substance abuse recovery centers in Alaska; response to natural disasters like flooding, tornadoes, and hurricanes in Idaho, Ohio, and Tennessee; and investments in early childhood education in the poorest parts of Florida. [Insert relevant story from your state/district]
- At a time when charitable organizations are losing federal funding and the need for local support is growing faster than ever, this tax takes local charitable dollars away from the communities and people that can least afford it.
- Local money is best kept in our towns and cities to help our friends, families, neighbors, and communities. Tying the hands of philanthropy and taxing their resources only punishes everyday people who rely on them.
Even in times of economic decline, private philanthropy is a steady source of investment in American communities.
- The growth of foundation endowments during economic upswings helps cushion philanthropy against economic downturns, creating certainty for communities when times are tough.
- Foundations are always at the forefront of disaster response. In 2020, foundation giving jumped 19%, with philanthropy injecting needed dollars when communities needed them most. Even when foundations lost 20% of their assets during the Great Recession, many foundations increased their payout to make sure suffering Americans could cover their rent, heat, and electric bills.
- At a time when our communities need it most, Congress must not tie the hands of charitable organizations or limit their resources.
