Sign On Letter to Help Protect Philanthropic Assets and Tax-Exempt Status

This letter outlines the concerns shared by foundations across Indiana and will be delivered to our congressional delegation. Please sign on to the letter below to show your support.

Letter to Indiana Congressional Delegation

Dear Members of the Indiana Congressional Delegation,

On behalf of Indiana Philanthropy Alliance (IPA) and over 1,300 foundations and charitable organizations throughout the state, we thank you for your service and for your continued focus on policies that strengthen our communities. As you review the recently introduced reconciliation bill, we write to offer both appreciation and concern — and to urge thoughtful consideration of how the bill’s provisions will affect charitable giving and philanthropic capacity in Indiana.

We commend the inclusion of provisions that promote giving, such as the reinstatement of the universal charitable deduction. This measure marks a critical step toward broadening charitable participation and recognizes the generosity of all Americans, regardless of income level.

However, we are deeply concerned that other provisions would significantly hinder philanthropic resources at a time when charitable organizations are being asked to do more:

1. Tiered Excise Tax on Private Foundations

The proposal to impose a steeply tiered excise tax on foundation investment income — up to 10% for the largest foundations — is projected to divert over $200 million each year away from Hoosier nonprofits and into the Washington bureaucracy. Every dollar taxed is a dollar not invested here at home in faith-based institutions, education, disaster relief, and other community priorities.

2. Corporate Giving Restrictions

The introduction of a 1% floor before corporations can deduct charitable contributions may unintentionally disincentivize giving, especially among small and mid-sized businesses that are vital community partners. In a state like Indiana, where local employers play an outsized role in civic life, this change could disincentivize giving, and it threatens to disrupt long-standing partnerships between local business and local solutions.

3. Revocation of Tax-Exempt Status Without Due Process

Perhaps most concerning is the provision allowing the government to unilaterally revoke an organization’s tax-exempt status based on unverified allegations, without judicial review. While we wholeheartedly support national security, removing nonprofit status without due process sets a dangerous precedent.

4. Expansion of Unrelated Business Income Tax (UBIT)

The proposed changes to the Unrelated Business Income Tax (UBIT), including taxes on parking and transportation, is an example of regulatory overreach that increases compliance burdens and diverts unrestricted resources away from programs that are typically used for innovation, and community responsiveness.

Our Request

We urge you to:

Support the universal charitable tax deduction
Oppose the provisions that weaken charitable giving incentives and redirect philanthropic dollars from those in need to the government
Maintain nonprofit independence and due process protections

Now is the time to reinforce—not restrict—philanthropy’s ability to invest in what works. Local knowledge, personal generosity, and entrepreneurial spirit must not be taxed to pay for government spending.

Thank you for your attention and for standing with Indiana’s charitable sector. We are ready to work with you to preserve strong, independent, and effective philanthropy in Indiana and across the country.

Sincerely,

Claudia Cummings

President & CEO

Indiana Philanthropy Alliance

Full Name

Organization Name

Phone

City/Town

State

ZIP/Postal Code

My organization would like to sign on to the statement.

I have the authority to sign my organization on to this statement.

By signing onto this statement, you are giving permission for your organization's name to be included in public-facing communications tactics (e.g., paid ad, online post, social media, etc.) that demonstrate how many charitable organizations are standing together to resist this threat to philanthropy.

Contact Information