A 600% Tax Hike on Charitable Foundations is an Attack on Free Speech

June 17, 2025 | Luke Wachob

People United for Privacy Foundation believes in a vision of America where “all sides of a debate will be heard” and “all organizations have the ability to advance their missions because the privacy of their donors is protected.” Our work supports this vision by safeguarding donor privacy – the principle that your name, address, employer, and other sensitive personal information should not be weaponized against you for supporting a cause you believe in.

Threats to the nonprofit sector, however, do not always come in the form of privacy violations. Sometimes, they appear as financial burdens that directly limit a nonprofit’s ability to advocate and fulfill its mission. That’s why PUFPF recently joined a letter to Congress opposing a 600% tax increase on charitable foundations.

Part of the “One Big, Beautiful Bill,” this extreme tax proposal would strip resources from private philanthropy and make it harder for foundations to advocate on behalf of their members. The letter, organized by the Philanthropy Roundtable, explains:

“Instead of targeting the resources of private foundations, Congress should view them as the perfect partner to fill the gaps as policymakers roll back bloated and ineffective government programs. The truth is that most private foundations operate with lean staff, longterm vision and a deep commitment to serving their communities. Increasing their tax burden would discourage the generosity of families and individuals who voluntarily choose to dedicate time and resources to improving the world for those around them.”

Americans across the political spectrum rely on nonprofit organizations to be their eyes and ears in government. While citizens are busy living their lives, nonprofits serve as watchdogs that can sound the alarm when government actions or proposed policies threaten their members’ wellbeing. To serve this vital civic role, foundations need the freedom to raise and spend resources without crushing tax burdens.

The “One Big, Beautiful Bill’s” 600% tax hike would stifle charitable giving, silence nonprofit voices, and undermine the very freedoms that make robust public debate possible. Policymakers who value free speech, civic engagement, and personal privacy should work to empower charitable foundations, not punish them.