The article by Timothy J. McClimon discusses the “Big Beautiful Bill” (H.R.1) passed by the Republican-led House of Representatives, which brings significant changes to charitable giving in the U.S. The bill introduces deductions for individual taxpayers while substantially raising taxes on private foundations and imposing stricter regulations on corporate giving. The potential effects on charitable donations and overall community support are explored in detail.
Key Points
- H.R.1 includes a new charitable deduction for non-itemising taxpayers, potentially boosting small donations.
- Private foundations face increased excise tax rates, significantly reducing funds available for grants to nonprofits.
- A one percent minimum contribution requirement for corporations may lead to decreased charitable giving by many businesses.
- Experts predict many nonprofits reliant on corporate donations will face severe funding cuts under the proposed changes.
- The fate of the bill rests with the Senate and President, with widespread agreement that it is detrimental to charitable efforts.
Why should I read this?
If you’re passionate about charitable efforts or involved in nonprofit work, this article is a must-read! It outlines upcoming changes that could drastically alter the landscape of corporate and private philanthropy in America. Understanding these changes will empower you to navigate the challenges ahead and advocate for your organisation’s needs.
