Close “Charitable” Loopholes for the Ultra-Wealthy
U.S. Congress
When you give to charity, you can get a tax break.
But some of the wealthiest Americans get huge “charitable” tax breaks without actually supporting charities. Here’s how: they give to their personal foundations, which can then transfer the money to Donor-Advised Funds -- and sit on it long-term, instead of giving a cent to help the needy.
President Biden's 2023 budget proposal would change the rules to prevent this. Now we need to show lots of support to make sure this change gets through Congress. Add your name: charitable giving should be required to actually go to charities!
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To:
U.S. Congress
From:
[Your Name]
I'm writing in strong support of the charitable-giving changes laid out in the Biden Administration's FY2023 Budget Proposal, specifically preventing private foundations from using donor-advised funds to satisfy their 5% charitable payout requirements, unless they can show the money reaches charities by the end of the following year.
It’s unconscionable that more than $1 trillion in charitable donations is being warehoused away from working charities at a time when many local nonprofits – and their beneficiaries – are facing serious financial hardship.
Congress should not tolerate – and our communities cannot afford – laws that deliver significant tax breaks on charitable contributions that never make it to actual working charities. I urge you to act on these common sense reforms that could have profound impacts in our community.