Public Policy Update - January 21, 2025
Philanthropy Southeast regularly provides members with updates on the latest public policy developments in Washington and state capitols around the region, analyzing their possible impact on the charitable sector. If you would like to see an issue featured in a future Public Policy Update, contact Jaci Bertrand at jaci@philanthropysoutheast.org.
Philanthropy Needs You at Foundations on the Hill
Major tax legislation is high on the agenda of both leaders in Congress and the White House this year, creating an opportunity for policies that strengthen philanthropy – but also the threat of laws that weaken our ability to support communities and people in need.
Lawmakers need to know about the great work philanthropy does throughout our region – and how policy can help or harm our sector. That’s why we need you at next month’s Foundations on the Hill.
Foundations on the Hill, taking place February 23-26, will bring dozens of philanthropic leaders to Washington, D.C., to meet with lawmakers and key staff and advocate for policies that strengthen your ability to make an impact.
Learn why you belong at FOTH: View the recording of our recent webinar, Why You Belong at Foundations on the Hill, to learn why it’s important to connect with lawmakers and how Philanthropy Southeast will support you before, during and after your time in Washington.
New to policy and advocacy? Foundations on the Hill includes optional programming from our partners at the United Philanthropy Forum to help you learn about issues relevant to our field, along with tips and strategies for effective meetings and other outreach to policymakers.
Finally, if you’re already planning on attending FOTH, make sure you’re signed up for our February 5 webinar, What You Need to Know at FOTH 2025, where we’ll review this year’s key messages and discuss how to get the most out of your time in Washington.
Lawmakers Eye Tax-Exempt Sector as Potential Revenue Source
Many provisions of 2017’s Tax Cuts & Jobs Act are set to expire this year, and Republicans appear eager to not only preserve the law’s tax cuts but also enact others.
However, the expedited process Republicans will use to pass such legislation and avoid a Senate filibuster, known as budget reconciliation, requires lawmakers to find offsets that keep the overall package revenue-neutral – and it appears there’s some appetite for making up for lost revenue through the charitable sector.
Last week, Politico reported on a 50-page document of tax and spending provisions compiled by House Budget Committee Republicans. It includes proposals to eliminate the nonprofit status for hospitals, hike taxes on some university endowments, tax many scholarships as income, and eliminate the deduction for charitable contributions to certain health organizations, among dozens of other measures.
While the document is only a starting point as discussions on tax and spending legislation proceed, it signals lawmakers are open to looking into the tax-exempt sector to raise federal revenue.
Treasury Secretary Nominee Moving Toward Confirmation
President Trump’s nominee for Treasury Secretary, Scott Bessent, was approved by the Senate Finance Committee on Tuesday, and his nomination is expected to be confirmed by the Senate soon.
The Treasury Department is responsible for issuing and implementing many laws and regulations governing the philanthropic sector. Bessent is likely to also play a key role in moving the administration’s tax and spending priorities through Congress.
During his confirmation hearing, Bessent said he would look for opportunities to scale back Treasury and IRS regulations, which is a positive sign for advocates who have asked the government to withdraw and reconsider pending regulations on donor-advised funds.
Bessent also said that he believes to address the deficit, policymakers should first look to reduce spending, not raise taxes – a positive sign for those seeking to protect the philanthropic sector from increased taxation.
