Barbara Comstock: Charitable Organizations Benefit the Public Good – and The GOP’s Tax Bill Will Cost Us.
By Barbara Comstock
We Americans pride ourselves on being one of the world’s most generous countries: In 2023, we gave $557 billion to US charities, with more dollars going to religious, human services, education, health care, art and culture, and environmental and other causes than ever before.
It is laudatory that two-thirds of American households donate; that is more than those who vote in some years. Approximately 25% of Americans, which is 63 million people, volunteer in support of the public good. Twelve million people are employed in the non-profit sector.
So, as a former Republican member of Congress, it is one more concern of mine to see that the GOP’s tax bill moving through Congress would too heavily increase taxes on charitable foundations, costing Americans over $15 billion in local community support. And I am not alone in this concern among my fellow Republicans.
Conservative policy makers and officials have argued for years that charitable giving is a good in and of itself. They have also argued that many issues are better addressed in the private sector rather than by the government and public dollars. Countless conservatives have founded charities and foundations to aid in causes that they believe in – such as education, services for veterans, or promoting stronger families. Our nation’s charitable foundations and nonprofits are a vital part of the American experiment and represent our nation’s strong traditions and values – and they do indeed benefit those of us who give as well as those who receive.
A former boss of mine, and a former RNC Chairman, Ambassador, and Secretary of Veterans Affairs, Jim Nicholson, recently raised a key point when he asked why conservatives – who have historically fought against tax increases – are now reversing course when it comes to private, charitable organizations.
Why indeed? With growing human needs in our country – food, housing, health care, services for the elderly and disabled, and more – we need our charitable foundations and nonprofits more than ever. Yet, Congress’s proposed 600% tax increase on charitable foundations will negatively impact our ability to tackle these issues head-on in communities across our country. This is a deeply misguided policy proposal that my former colleagues would be wise to reject.
Raising taxes on charitable giving to fund the government is not the future that anyone who celebrates our charitable history and spirit wants – left, right, or center. Our charitable ecosystem has thrived because we have always understood that a diverse group of people should have the freedom to give to the causes they care about. Like me, Secretary Nicholson has also been involved in a variety of Catholic charities that fund diverse needs all around the world. Usually, when we join together in these causes – whether it is responding to a natural disaster, a food pantry, or an international Red Cross call for help – we are working side by side with people of all faiths and political stripes, whether we know it or not.
Conservatives who have talked about limited government for years would be well advised to retreat from the idea of using government to tell private organizations how to advance their causes. Opening that door would threaten the charitable foundations and nonprofit world that those across the political spectrum have developed to serve our country well and have been celebrated around the world.
Let’s not let this misguided tax increase encroach upon these areas of civil society that still bring Americans together to serve others, with all involved becoming better for it.
Barbara Comstock is Senior Advisor at Baker Donelson and a former Republican Member of Congress who represented Virginia’s 10th District. Prior to Congress, Barbara served three terms in the Virginia House of Delegates and was the only woman in the Virginia congressional delegation during her tenure.
