Protect the Philanthropy Hoosiers Trust

In Indiana, philanthropy is not just a word. It’s a way of life. Across all 92 counties, local foundations and nonprofits support the neighbors we know, the schools our children attend, and the hospitals that care for our families. From food pantries and after-school programs to health clinics and workforce training, charitable organizations are meeting needs in visible, vital ways.

So when federal policymakers propose changes that would drain resources from these trusted institutions, Hoosiers have a right to be concerned.

A newly introduced federal tax bill includes several provisions that would directly undermine the capacity of Indiana’s philanthropic sector. The most significant? A tiered tax increase on private foundation investment income, climbing from the current 1.39% rate up to 10%. In practical terms, this change is projected to divert more than $2 billion from Indiana-based grantmaking over the next decade. These are dollars that would otherwise go to nonprofits serving children, veterans, seniors, and working families.

The bill also includes a new restriction on corporate charitable giving, limiting deductions for small and mid-sized businesses that partner with community organizations. Another provision would expand rules that make nonprofit operations more costly and complex, burdening organizations that already stretch every dollar.

Perhaps most troubling is language that would allow the federal government to revoke a nonprofit’s tax-exempt status based on vague allegations, without judicial review. This provision opens the door to unintended misuse and undermines the fairness and trust that are foundational to charitable work.

Let’s be clear. Philanthropy is already held to a high standard. Foundations are required to give a minimum percentage of their assets every year, report all financials publicly, and operate under long-established oversight. They are not asking for a favor. They are asking for fairness.

And the public agrees. Year after year, surveys show that Americans trust nonprofits and foundations more than government, media, or major corporations. That trust is built on visible impact: the warm meals served, the safe shelter provided, the scholarship awarded. These aren’t headlines. They’re real lives improved by real organizations working with care and integrity.

Indiana Philanthropy Alliance represents more than 170 funding organizations rooted in towns and cities across our state. These are not elite institutions. They are local employers, family-run foundations, and community-driven partners working to make Indiana stronger.

Philanthropy is not a revenue stream for Washington. It’s a safety net, an innovation lab, and a vital thread in the fabric of our communities. To tax and regulate it into silence would be a mistake with far-reaching consequences.

As Hoosiers, we don’t turn our backs on those who help us. Let’s make sure Congress hears that. We must protect the philanthropic infrastructure that helps feed our neighbors, educate our kids, and lift up those most in need.

When you see a foundation’s name on a youth program, health clinic, or public library, know this. It’s not just a name. It’s a promise. One that should be supported, not weakened.