Joint Statement on "The One, Big, Beautiful Bill" Tax Legislation
Posted by [email protected] on May. 27, 2025 / Marketing / Subscribe 0
Please read this important joint statement from AFP Global on recent federal legislative action and consider contacting Senator McCormick and Fetterman with concerns about this bill’s impact on your organization and the sector.
Joint Statement on "The One, Big, Beautiful Bill" Tax Legislation
**FOR IMMEDIATE RELEASE**
May 22, 2025
Washington, DC
Leading Nonprofit Organizations Express Serious Concerns About Proposed Tax Bill
Four major nonprofit sector organizations—The Nonprofit Alliance, United Philanthropy Forum, Association of Fundraising Professionals, and Charity Navigator—issued a joint letter to Congress earlier this week, ahead of the House floor vote, expressing grave concerns about "The One, Big, Beautiful Bill" currently under consideration in Congress. The House passed the bill early Thursday morning on a razor-thin 215-214 vote with 1 House member voting present.
While the organizations appreciate the inclusion of the above-the-line charitable deduction for non-itemizers, they highlight that the bill relies on nearly $50 billion in new and increased taxes on the charitable sector to pay for other tax cuts.
The organizations warn that these changes would significantly reduce resources available for charitable work at a time when federal funding cuts have already caused more than 14,000 nonprofit job losses since January 2025. They look forward to collaborating with congressional leadership throughout the process to further expand giving incentives with proven records of success.
The bill will now go to the Senate and is expected to be taken up after the Memorial Day recess.
Statements from Organization Leaders
Shannon McCracken, CEO of The Nonprofit Alliance:
"The charitable spirit transcends political divides and unites us in service to our communities. While we appreciate the inclusion of the above-the-line charitable deduction for non-itemizers, this bill extracts nearly $50 billion from philanthropy to fund other tax cuts. At a time when nonprofits are already struggling with federal funding cuts, these changes would dramatically reduce resources for organizations providing essential services. The solution is clear: build upon proven, bipartisan incentives like those in the Charitable Act to encourage greater generosity from everyday donors. When Americans give, communities thrive—this principle deserves protection through our tax policies.”
Deborah Aubert Thomas, President & CEO of United Philanthropy Forum:
"Foundations are responsible for 21% of total charitable giving and are vital sources of support for charitable causes nationwide. The proposed progressive excise tax structure, ranging from 1.39% for foundations with less than $50 million in assets to 10% for those with over $5 billion, would dramatically reduce grantmaking capacity. This would divert billions of dollars from charitable purposes to the federal government at a time when communities are already struggling with reduced services. Limiting foundations' ability to fulfill their role would place greater pressure on governments at all levels to meet community needs."
Art Taylor, President & CEO of Association of Fundraising Professionals:
"According to our Fundraising Effectiveness Project with GivingTuesday, over half of all charitable dollars in 2024 came from 'supersize' donors giving $50,000 or more. This bill potentially disincentivizes these major charitable gifts by allowing the 60% AGI limit to expire and revert to 50%, while also capping the value of itemized deductions. Similarly, the 1% floor for corporate charitable deductions threatens community-based nonprofits that rely on corporate support. These changes may be seen as revenue-raisers in the short term, but they could have severe consequences for local and national nonprofits serving our communities."
Michael Thatcher, President & CEO of Charity Navigator:
"Every day, millions of Americans benefit from charitable services that strengthen our communities—from the child receiving tutoring to the senior accessing meal delivery, from families finding shelter to veterans receiving support services. The bipartisan Charitable Act recognizes that giving isn't partisan—it's fundamentally American. Yet this tax bill would erase nearly $50 billion from these vital services. At Charity Navigator, we see firsthand how effective nonprofits transform lives when properly resourced. Congress should build on the bipartisan spirit of the Charitable Act rather than undermining the sector that embodies our shared values of compassion and community support."
Contact: Edward Kyle, [email protected]
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