Public Policy Update – March 5, 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.
FOTH at Full Strength: Philanthropy Southeast Hits Capitol Hill
Nearly 50 philanthropic leaders from the Southeast joined colleagues from across the country in Washington last week for Foundations on the Hill, breaking attendance records and delivering a clear message to lawmakers about the importance of their work – and the need to protect it.
The Philanthropy Southeast delegation held dozens of meetings over two days, centered on the importance of not only protecting philanthropy in negotiations on tax reform, but also promoting it by establishing a permanent, universal charitable deduction.
In meetings with lawmakers and staff, FOTH attendees made clear that philanthropic assets, including endowments and donor-advised funds, should stay with the communities they were meant to benefit – and not be targeted as a potential source of tax revenue. The Philanthropy Southeast delegation also called on representatives and senators to sponsor the Charitable Act (H.R. 801 / S. 317) to establish a universal charitable deduction available to all Americans filing a tax return.
The visits made an immediate impact, with a bipartisan group of 22 House members signing on to co-sponsor the Charitable Act following FOTH, including two members from Kentucky, two from Alabama and one each from Louisiana, Georgia and North Carolina. In the Senate, Sen. John Boozman (R-Arkansas) has also announced his support.
Thank you to everyone who joined us in Washington, especially the state captains who scheduled meetings and led their delegations throughout a busy week!
In the weeks ahead, the Philanthropy Southeast delegation’s work will continue via follow-up messages and outreach in lawmakers’ home districts and states. However, success on the policy front will require others to speak up on behalf of philanthropy – more on that below.
Year-Long Advocacy Effort Begins With FOTH, Continues with You
Foundations on the Hill is in the rearview, but the messages delivered last week will only gain importance as Congress continues to consider tax and spending legislation this year.
Regardless of whether you went to FOTH, now is the time to strengthen your relationships with your representatives and senators in Congress. Review the congressional calendar to determine when lawmakers are likely to be in your district or state. Contact their office to schedule an in-person meeting or make plans to attend their public events.
When you do meet with lawmakers or staff, share stories of how actions in Washington, including funding freezes, have affected nonprofits and people in your community – making it even more important that philanthropic resources are able to flow freely within the community instead of being tapped as a source of tax revenue.
Finally, urge your representatives to support the Charitable Act (H. 801 in the House, S. 317 in the Senate) to protect and promote philanthropy.
The Philanthropy Southeast team is ready to support you and your outreach. Fact sheets for each state are available here, and you can contact our team if you need support in arranging a meeting.
We will be in touch throughout the year with other opportunities to advocate for philanthropy and the charitable sector – look for more information soon!
Tax Legislation Update: Trump Weighs In, House & Senate Take Different Approaches
In this week’s address to Congress, President Trump called for several new tax cuts, plus a permanent extension of the expiring provisions of 2017’s Tax Cuts & Jobs Act – however, his remarks appear to have made the task facing congressional Republicans harder, not easier.
A tax bill that includes all of Trump’s proposals would far exceed the $4.5 trillion House Republicans allocated to tax writers to add to the deficit for tax cuts in their reconciliation package – the blueprint for which passed the House by the narrowest of margins last week. To meet Trump’s demands, Republicans would need to raise a significant amount of revenue through new taxes, which could target philanthropy. The party could also disregard his wishes or, more likely, seek a scaled-back compromise.
Beyond those concerns, House Republicans also need to come to an agreement with their Senate colleagues, who passed their own budget blueprint on February 21 that focuses mostly on border security and defense and does not address taxes at all. Both chambers must pass an identical plan, known as a budget resolution, in order to take advantage of the reconciliation process and avoid a filibuster in the Senate.
The divide over the budget has, for now, taken a back seat to keeping the government up and running. The government will shut down on Friday, March 14, unless lawmakers can agree on a spending bill. Fiscal conservatives in the GOP are unlikely to support a continuation of funding. Meanwhile, Democrats appear unlikely to help bring a bill across the finish line unless it reins in Elon Musk and the Department of Government Efficiency (DOGE).
While the funding debate is in the spotlight, work on tax legislation has continued in the background. Taxwriters are discussing how to prioritize their agenda so they can be prepared to quickly assemble their portion of a budget package once the House and Senate agree on identical budget blueprints that unlock the reconciliation process.
