What Professional Advisors Need to Know

The U.S. House of Representatives recently passed the “One Big Beautiful Bill Act,” a sweeping tax package that now moves to the Senate for consideration. While the bill includes a range of tax reforms, several provisions are drawing serious concern from the nonprofit sector—especially those that could negatively affect charitable giving and the long-term planning strategies of individuals and families.

The Community Foundation of Northeast Iowa (CFNEIA) is closely monitoring this legislation and strongly encourages professional advisors—particularly those working in estate planning, philanthropic advising, and financial planning—to stay informed and take action. Below is a breakdown of the key provisions and CFNEIA’s position on each, tailored to support your work with charitably inclined clients.

We Oppose

New or Expanded Taxes on Foundations and Nonprofits

These provisions would impose or expand taxes on nonprofit organizations and private foundations. This effectively diverts limited philanthropic dollars away from mission-driven work and into federal coffers. For families and individuals establishing or contributing to donor-advised funds, family foundations, or other charitable entities, these taxes could reduce the impact of their giving and increase administrative complexity.

Why It Matters to Advisors:
Tax burdens reduce the amount of funding available for grantmaking, potentially discouraging the creation of charitable vehicles altogether. For your clients interested in creating legacy gifts or long-term charitable funds, this undermines the effectiveness of those tools.

We Oppose

Limits on Charitable Deductions

These sections propose limiting the deductibility of charitable gifts, especially those made by corporations and high-net-worth individuals. Often used as a revenue “pay-for,” these provisions threaten to depress charitable giving across the board.

Why It Matters to Advisors:
Reduced tax incentives can directly influence donor behavior. Your clients may be less inclined to make major gifts—particularly appreciated assets or estate bequests—if the tax benefits are diminished. These provisions make long-term charitable planning less attractive just when communities need philanthropic support the most.

We Support

Expanding Charitable Giving Incentives: The Charitable Act

CFNEIA strongly supports inclusion of the Charitable Act in the final Senate bill. This bipartisan proposal would restore and expand a non-itemizer deduction for charitable contributions, allowing taxpayers who do not itemize to still benefit from giving to nonprofits.

Why It Matters to Advisors:
This would provide a simple, accessible incentive for a broader base of donors, including middle-income households—often overlooked in charitable tax policy. For advisors, it means more flexibility in helping clients of all income levels integrate giving into their financial and estate plans.

For more information and advocacy tools, please refer to the National Council of Nonprofits' advocacy webpage and overview of the Charitable Act.

Together, we can help preserve the integrity and impact of charitable giving for future generations.