US EditionBipartisan support helps foundations avoid tax increase in new Trump legislation
UNITED STATES, JUL 16 – A bipartisan coalition stopped a proposed 10% tax on large philanthropic foundations' investment earnings, preventing a 600% increase that could have reduced charitable giving, advocates said.
- On July 4, 2025, President Donald Trump signed a tax and spending bill that increased taxes on the largest universities’ endowments but not on private philanthropic foundations in the U.S.
- This legislation followed efforts by two Republican senators and a bipartisan coalition who prevented a proposed 600% tax increase on foundations’ endowments above $5 billion.
- Senator Todd Young of Indiana noted that numerous Republicans recognize the importance of foundation investments in local communities, even though some high-profile foundations have faced criticism for supporting certain progressive policies.
- Young acknowledged that some convincing was necessary and noted that charitable contributions tend to increase as economic conditions improve, since individuals have greater capacity to donate.
- The bill’s approval could lead to increased charitable donations through expanded tax deductions, yet nonprofit leaders caution that reductions in government-funded support programs may place additional strain on charitable organizations.
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600% tax hike on private foundations cut from Trump's BBB after extensive lobbying: 'This took some persuasion'
“Let’s be honest here," Sen. Todd Young told the AP. "The target of this excise tax increase was ... a handful of large foundations that are nationally known that have been accused of embracing and perpetuating certain woke policies and agendas."
·New York, United States
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Associated Press News+44 Reposted by 44 other sources
Bipartisan support helps foundations avoid tax increase in new Trump legislation
Two Republican senators and a broad coalition of funders made a big difference for private foundations during negotiations over President Donald Trump’s tax and spending legislation.
·United States
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Two Republican senators and a broad bipartisan coalition of financiers and non-profit organizations avoided a 600% increase in taxes on the endowments of larger private foundations as part of President Donald Trump's fiscal and spending legislation.
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Total News Sources49
Leaning Left8Leaning Right7Center25Last UpdatedBias Distribution63% Center
Bias Distribution
- 63% of the sources are Center
63% Center
L 20%
C 63%
R 18%
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