Philanthropy Roundtable President and CEO Christie Herrera recently joined a DonorsTrust webinar to share her readout on what the recent election results mean for a thriving philanthropic sector and civil society.
The webinar also features Senior Visiting Fellow in Economics at The Heritage Foundation Stephen Moore, estate planning attorney Michael Whitty and President and CEO of DonorsTrust Lawson Bader. It is hosted by Vice President of DonorsTrust Peter Lipsett.
Herrera says although the Roundtable is optimistic about the new Congress and administration, we must stay vigilant to protect philanthropic freedom and foster economic growth. She gives an early preview of how the Roundtable will address the 2025 Tax Cuts and Jobs Act (TCJA) and proposed threats to the charitable sector like restrictions on giving through donor-advised funds (DAFs).
Below are highlights from Herrera’s remarks during the conversation:
“We are here to make sure that philanthropy doesn’t become Washington’s personal piggy bank, but we’re also going to be standing up for policies that boost economic growth. We know lower taxes will put more money in our pockets and create the prosperity we need to fuel philanthropy. I think that’s a very good thing, and that’s why I’m optimistic about the next two years.
Big picture thinking about civil society, we should love philanthropy and nonprofits because they limit the size and scope of government and help people in ways we believe government cannot or should not. Now that the dust has settled on the election, I’m feeling very optimistic about the new president and the new Congress. We have so many opportunities to protect donors and their ability to give, how, when and where they choose. The Roundtable will be driving that effort.
We also have a massive opportunity with the Tax Cuts and Jobs Act being up for reauthorization, but there is a little bit of caution. When you see tax reform take center stage as it will in the next Congress, members of Congress need to find ways to pay for those tax cuts. And that could mean taxes on nonprofits, preventing private foundations from using their donor-advised funds, changes to the public support test and lots of other ideas that really have targeted philanthropy that we’ve heard percolating on Capitol Hill these past few years”
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“The 2025 tax debate is far bigger than the charitable tax deduction. We’re looking at government reforms that target philanthropy, and we’re also seeing downstream consequences for donors and nonprofits. We know members of Congress want these extended tax provisions to be paid for. That could mean taxing endowments, taxing assets, taxing services and government reforms that target philanthropy. We’ve seen this from the left and the right.
There are also a lot of donor intent attacks when it comes to big institutions and endowment gifts. We have seen donors, especially in higher education, see where their money is going and think, “Gosh, why did I write that unrestricted check to Yale or Princeton?” And what we are counseling donors to do is look at their gifts as agreements and ensure that not only is their donor intent being protected, but also their values are being protected as well.”
