Public Policy Update - June 11, 2025
Philanthropy Southeast Members Headed to Washington, Will Urge Senate to Reject Increase in Private Foundation Excise Tax
Several Philanthropy Southeast members are set to head to Washington, D.C., next week to meet with Senate offices and call on senators to reject a proposed increase in the private foundation excise tax.
The Capitol Hill visits, coordinated in partnership with the Council on Foundations and supported by public policy consultants at Integer, are part of a full-court press by the sector to remove the tax increase on net investment income – as high as 10 percent on some foundations – from the reconciliation package the House passed last month.
Philanthropy Southeast member outreach will focus on the need to keep charitable resources in their home states, where they can be used to support community organizations and address pressing needs.
Along with calling for the removal of any tax increase on private foundations, members will also ask that the Senate bill include a strong, permanent universal charitable deduction – the House bill has a small deduction that would eventually expire.
Send a Message to Senators: Keep Philanthropic Resources Where They Belong – At Home
While some foundation leaders are going to Washington, phone calls and emails can also be an effective way to urge lawmakers to reject any increase in the private foundation excise tax.
The best time to reach out to your senators is right now – here are a few points to make when you call or write:
- The House reconciliation bill would reduce charitable giving to key nonprofit organizations in every state by millions of dollars each year.
- These dollars would normally go to nonprofit organizations to help them address critical needs, improve lives and enrich communities. Instead, under the House bill, they’d be sent to Washington.
- For nearly 60 years, Congress has recognized that private foundation assets should be protected. The private foundation excise tax started at 4 percent in 1969 and has only declined since then.
- The money from any tax increase would make up only a sliver of federal revenues but is much more critical to the work of foundations and the organizations they support.
When you contact lawmakers, tell them about specific programs that could be threatened if your foundation had to pay more in taxes – these stories are a powerful way to show the human impact of reducing philanthropic resources.
Visit the Senate website if you need to obtain contact information for your state’s senators.
Will the Senate Meet Its Deadline?
Philanthropy Southeast members will arrive in Washington two weeks ahead of Senate Majority Leader John Thune’s self-imposed deadline for passing the “megabill” out of his chamber. Thune (R-SD) has maintained the Senate will complete work on its version of the legislation ahead of the July 4 recess.
However, there are some indications the deadline could slip. The Senate Finance Committee was expected to release its portion of the legislation – which would include tax changes affecting foundations – this Friday, but Politico reports that will likely not happen until early next week.
Punchbowl News has also reported doubts about meeting the current deadline: “Privately, GOP senators, the White House and House Republican leaders are split on whether they can pull it off,” it reported. “Some have indicated they don’t see July 4 as a real deadline. Indeed, it’s an artificial one, though the debt limit hangs over the process. But as Senate Majority Leader John Thune knows, nothing gets senators motivated more than a deadline.”
