Nevada Lawmaker Tapped for Tax Writing Committee
Democratic leadership selected Rep. Steven Horsford (D-NV) to rejoin the Ways and Means Committee, which has jurisdiction over the tax-exempt sector, filling the seat vacated by the late Bill Pascrell (D-NJ). Horsford previously served on the Committee from 2018 to 2022, but his record is light on philanthropic issues. Horsford is expected to remain on the Committee next Congress, and his ascension provides another opportunity for organizations in the Southwest to build a strong relationship with a taxwriter ahead of tax reform.
Expanding Charitable Giving Incentives Championed On and Off the Hill
Earlier this month, the Senate Finance Committee held a hearing on tax avoidance and the 2025 tax policy debate, which most of the participants used as an opportunity to highlight their priorities for tax reform. In the only mention of philanthropy, Sen. James Lankford (R-OK) said that passing legislation to incentivize charitable giving will remain a top priority for him in tax reform. As you’ll recall, Sen. Lankford introduced the Charitable Act (S. 566), which would create a universal charitable deduction available to non-itemizing taxpayers.
The Generosity Commission recently released its final report. As you may recall, the group was formed out of concern over the declining number of Americans who give to and volunteer with nonprofits and undertook years of research into those trends to inform its final report. The report includes nine recommendations for policymakers, the sector, and others to reverse declines in the number of givers and volunteers and promote generosity. The Commission’s chief policy recommendation is to increase access to the charitable tax deduction, as legislation like Sen. Lankford’s Charitable Act would.
Calls for Philanthropic Reform Persist
Last month, the Institute for Policy Studies published a set of charitable reform proposals that echoed previous calls from the group to reform payout requirements for some private foundations, adjust which expenses count toward those requirements, and impose other new restrictions on DAFs. These proposals may find their way into future reform legislation similar to the ACE Act or be considered in legislation to address the expiring provisions in the 2017 tax bill. This latest report and continued calls to reform philanthropy reinforce the importance of educational efforts with policymakers ahead of tax reform to highlight the negative potential impacts of such reforms.
Opportunities to Provide Public Policy Input
As you’ll recall from previous newsletters, House Republicans on the Ways and Means Committee set an October 15 deadline for the public to submit input to the tax teams it formed ahead of 2025’s $4.6 trillion tax cliff. PSW and its Public Policy Committee are partnering with Integer to craft a submission that will outline PSW’s priorities. Additionally, the IRS published a request for input earlier this month on how burdensome tax filing requirements, including Forms 990, 990-EZ, 990-T, and 990-PF, can be for tax-exempt organizations. Responses will be accepted until November 12. You can find the full request here.
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