CFAI Statement on Foundation Excise Taxes

2025 Tax Bill: Private Foundation Excise Taxes

Community foundations and private foundations are not the same. But we have a lot in common: namely our shared interest in supporting our nation’s communities.

That’s why we urge Congress to ensure foundations can continue to advance opportunity and address urgent needs. The House proposal to increase the excise tax on endowment income at private foundations would do the opposite — taking resources away from charitable organizations that work to make our communities stronger.

As community foundations, many of our strongest partners are local private foundations who invest along with our donors to support the people and organizations that are working on the ground in towns and cities across our country. An increase in the excise tax would be a shortsighted decision — depriving communities of critical resources at a time when needs are rising.