Philanthropy Roundtable, along with other free-market and conservative organizations, sent a coalition letter to members of the Senate and the House of Representatives opposing the significant tax hike on private foundations in the “One Big, Beautiful” tax bill. The letter warns of the catastrophic impact on local communities posed by this proposal to divert philanthropic resources into the federal bureaucracy.
The text of the letter to the Senate is below. The letter was last updated on June 16, 2025. You may download a PDF copy here.
A letter was sent to the House of Representatives on June 23, 2025. You may download a PDF copy here.
——————————————-
Dear Leader Thune and Chairman Crapo:
As Congress considers how to make the 2017 Trump tax cuts permanent, the undersigned organizations write to express our strong opposition to any proposals that would impose new taxes or restrictions on private charitable foundations.
As nonprofit organizations that support individual liberty, limited government and free enterprise, we know policies that siphon private dollars away from charities to line the government’s coffers are antithetical to conservative values and significantly impair the ability to pursue our missions.
Our organizations support conservative and free market leaders whose research and analysis inform policy ideas, increase government accountability and transparency efforts, educate the public, drive civic engagement and promote American values. We would not be the only ones harmed by such policies, however. Charitable giving supports nearly every conservative cause from advancing the school choice and pro-life movements to protecting our constitutional rights and religious freedoms—as well as community groups nationwide that support our country’s most vulnerable.
While President Trump and congressional leadership have made laudable strides toward lowering taxes and addressing runaway federal spending, imposing additional taxes and restrictions on charitable giving undermines their goal of uplifting Americans.
One proposal before Congress would raise taxes on charities by more than 600%, allowing the IRS to take nearly $16 billion from private charitable foundations that would otherwise help improve the lives of many Americans. Countless programs and services that provide for the needs of people in every state are funded by the generosity of private citizens. Without them, we would see more Americans reliant on government, which ultimately costs us all more for what is often an inefficient bureaucratic solution.
This enormous transfer of private resources to fund big government spending runs counter to conservative principles and the Trump administration’s efforts to reduce the size and scope of the federal bureaucracy. Instead of targeting the resources of private foundations, Congress should view them as the perfect partner to fill the gaps as policymakers roll back bloated and ineffective government programs.
The truth is that most private foundations operate with lean staff, long-term vision and a deep commitment to serving their communities. Increasing their tax burden would discourage the generosity of families and individuals who voluntarily choose to dedicate time and resources to improving the world for those around them.
Charitable giving helps form the bedrock of a resilient America by supporting organizations committed to creating a stronger, healthier society where every person has the opportunity to thrive. We support our nation’s long history of encouraging private initiative and generosity that benefits the common good, and we will work to advance conservative and free market policies that continue this legacy.
Respectfully,
Christie Herrera
Philanthropy Roundtable
Paul Teller
Advancing American Freedom
Brent Gardner
Americans for Prosperity
Nicole Neily
Defending Education
Kristina Rasmussen
Do No Harm
Victor Riches
Goldwater Institute
Ronald M. Nate, Ph.D.
Idaho Freedom Foundation
Jon Caldara
Independence Institute
Patrice Onwuka
Independent Women
Mary Ellen Beatty
Institute for the American Worker
Tom Giovanetti
Institute for Policy Innovation
Dave Trabert
Kansas Policy Institute
Joseph G. Lehman
Mackinac Center for Public Policy
Pete Sepp
National Taxpayers Union
Jonathan Small
Oklahoma Council of Public Affairs
Sally Pipes
Pacific Research Institute
Heather Lauer
People United for Privacy Foundation
Brenda Talent
Show-Me Institute
Tracie Sharp
State Policy Network
David Williams
Taxpayer Protection Alliance
Todd F. Gaziano
The Center for Individual Rights
Roger R. Ream
The Fund for American Studies
Jenna A. Robinson
The James G. Martin Center for Academic Renewal
Jennifer Schubert-Akin
The Steamboat Institute
CC: All members of the Senate Republican Conference
