The Latest News on Charitable Giving and Nonprofit Tax Proposals

May 16, 2025

Orchestras and the wider nonprofit sector are speaking up as Congress considers tax policies that will have significant consequences for the future of charitable giving and nonprofits’ capacity to deliver on mission.

Congress is using the budget reconciliation process to extend many tax provisions from the 2017 Tax Cuts and Jobs Act (TCJA) that are set to expire at the end of 2025. The House Ways and Means Committee took action this week on a comprehensive tax reform package that will undergo further changes as negotiations in Congress move ahead.

What does this mean for the communities orchestras serve and the donors that support them?

The full text of tax provisions is nearly 400 pages in length, and comparisons to current law are outlined in a report from the Joint Committee on Taxation. The League partners with national nonprofit coalitions and associations that have created the following helpful summaries:

• National Council of Nonprofits: What’s in the House Tax Bill 
• Independent Sector: Summary of Key Nonprofit Provisions

Among the many provisions that will impact the nonprofit sector, this week’s tax package includes policies that orchestras and other nonprofits have addressed in prior tax reform conversations and in the lead-up to the current negotiations on the Hill. Nonprofit organizations are calling on Congress to:

• Support new and expanded incentives for charitable giving: A version of The Charitable Act, long championed by orchestras and the wider nonprofit sector, was included in the House bill. The provision could incentivize more giving among taxpayers that do not itemize their returns, providing a deduction of up to $150 for single filers, $300 for joint filers, for tax years 2025 through 2028 for contributions to a qualified charity.
• Prevent policies that would diminish resources for the nonprofit sector: Provisions in the House bill could diminish giving by some high-income taxpayers—those in the top 37 percent tax bracket—that would be subject to a reduction in the value of their itemized deductions. The bill also significantly expands the private foundation excise tax, which would reduce dollars available for charitable organizations.
• Protect tax-exempt status and benefits: A provision would reinstate a “nonprofit parking tax” that created a significant cost to orchestras and other nonprofits that offer parking and commuting benefits and that was successfully repealed in 2019. As Congress aims to reduce fraudulent activity, new rules could prevent full access to long-delayed Employee Retention Tax Credit payments. Also, nonprofits are seeking reassurance that any new authority given to the Treasury Secretary to revoke the tax-exempt status of organizations deemed as “terrorist-supporting” would address serious concerns about due process.

We’ve provided more details and talking points for speaking up in the League’s online tax policy campaign.

Significant changes to the tax package are expected as the Senate takes next steps, offering the opportunity to improve the outcomes for the nonprofit sector and potentially add provisions that have been omitted, such as updating the above-the-line tax deduction for performing artists to address the cost of expenses incurred in the course of their employment.

Tell your members of Congress to support policies that grow charitable giving and protect the nonprofit sector from harm!