Protecting Philanthropy's Freedom to Invest In Community Well-Being

United Philanthropy Forum letter sent to representatives on behalf of Pryme Solutions, LLC.

As a dedicated member of philanthropic organizations serving your constituents, and deeply aligned with Pryme Solutions' mission to promote the public good and develop synergistic communities, I'm writing to share our strong support for some provisions and express serious concerns about others in the Senate’s recent "One, Big, Beautiful Bill" legislation. We envision a world where communities thrive in harmony, empowered to resolve conflicts, embrace diversity, and catalyze positive change—a vision directly impacted by this bill's provisions, which will significantly affect the philanthropic sector's ability to uplift communities across America.

A Crucial Win for Charitable Giving, Empowering Shared Power

We wholeheartedly applaud the inclusion of a provision that would permanently restore the charitable deduction for non-itemizers of $1,000 ($2,000 for joint filers). This is a monumental policy victory that re-establishes a vital mechanism to encourage charitable giving from people at all income levels. It recognizes the generosity of every American, not just those who itemize, directly aligning with our value of Shared Power by empowering a broader base of individuals to contribute to positive change within their communities.

Urgent Concerns: Threats to Community Support and Social Progress

While we celebrate this positive step, several proposed changes in the tax package text threaten the very fabric of community support and directly impede Social Progress. Our commitment to Collaboration and finding Innovative solutions to complex societal challenges is undermined by these proposals:

• 35% Cap on Charitable Deductions

  The proposed 35% cap on itemized charitable deductions would directly reduce charitable giving from individuals to the nonprofit organizations that provide essential support and aid to communities, often in partnership with all levels of government. This decrease in funding means fewer causes can be supported, impacting critical services like food banks, faith-based ministries, mental health services, education programs, and disaster relief efforts.

Reducing these incentives will have severe consequences for individuals and families who rely on these services, especially at a time when community needs are rapidly increasing. This directly contradicts our dedication to driving Social Progress and fostering thriving communities.

• 1% Floor for Corporate Charitable Deductions

  The bill proposes limiting corporate charitable deductions to only those exceeding 1% of taxable income, while maintaining the existing 10% cap. It also includes carry-forward rules for excess contributions and would take effect starting in 2026.

This change would actively discourage small and mid-sized businesses—the backbone of our state's economy—from supporting local nonprofits, community events, and charitable causes. This particularly jeopardizes:

• Local fundraising events and galas

• Small community-based nonprofits

• In-kind donations from local businesses

• Corporate matching gift programs

Corporate giving isn't just about financial contributions; it's a powerful catalyst for broader community engagement. Business leadership in charitable causes encourages employee volunteerism and inspires additional community investment throughout our great state. Eroding this incentive will have far-reaching negative effects, hindering Collaboration between businesses and community organizations, and stifling Social Progress.

Our Clear Call to Action: Embracing Innovation for Community Flourishing

As a firm dedicated to Innovation and facilitating positive change within communities through a multi-faceted approach, we urge you to:

• Support the permanent charitable deduction for non-itemizers. This will significantly increase generous giving by providing a key incentive for the 90% of taxpayers who don't itemize their returns, truly embodying Shared Power.

• Oppose the 35% cap on itemized charitable deductions. This would drastically reduce donations, with direct and severe consequences for the nonprofits and the communities they serve in your state, thereby hindering Social Progress.

• Oppose the 1% floor for corporate charitable deductions. This would undeniably discourage business philanthropy and harm the small nonprofits that depend on these vital corporate partnerships, undermining Collaboration and community development.

The philanthropic and nonprofit sector plays an indispensable role in addressing community needs, especially as federal funding for many programs faces increasing uncertainty. We welcome the opportunity to provide additional information about how these provisions would directly affect organizations and constituents in your district.

Thank you for your careful consideration and unwavering commitment to supporting America's charitable sector, and for championing the principles that allow our communities to truly flourish.

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Protecting Philanthropy's Freedom to Invest In Community Well-Being