Washington Update (May 2025)-Recording & Slides

Video Transcription

Video Summary

In a surprise May webinar update, Brian Flavin, Vice President of Strategic Partnerships at CASE, discussed the latest developments on a significant tax bill progressing through the U.S. House of Representatives. The presentation focused primarily on the proposed tax legislation and its implications for educational institutions and charitable giving. He highlighted several key components of the tax bill, including extending individual tax cuts from the 2017 Tax Cuts and Jobs Act beyond 2025. These extensions involve maintaining current individual tax rates and doubling the standard deduction, which could affect charitable giving by reducing the number of itemizers who can deduct charitable donations.<br /><br />Flavin also addressed the expanded tax on endowments for private colleges and universities, which would see substantial increases depending on the per-student endowment size. This is a contentious provision, likely to impact financial aid and research funding adversely. A notable positive inclusion was a modest charitable deduction for non-itemizers, allowing limited deductions for charitable contributions.<br /><br />Other provisions include a 35% cap on itemized deductions for high-income taxpayers, introducing complications for corporate charitable contributions, and incentives focused on elementary and secondary education scholarship donations. Flavin noted that a complex legislative route requires a majority vote due to the reconciliation process, stressing the importance of advocacy efforts to alter the bill before it’s finalized.<br /><br />Flavin emphasized that educational institutions must engage in advocacy, leveraging alumni support through initiatives like CASE’s new alumni advocacy resource, to influence legislative changes positively. He concluded by encouraging institutions to stay informed and involved through CASE's advocacy network.

Keywords

tax legislation

charitable giving

educational institutions

individual tax cuts

endowment tax

charitable deduction

itemized deductions

advocacy efforts

alumni support

CASE network