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President Biden Releases FY 2023 Budget Recommendations

April 13, 2022 5:37 AM | Chelsey Blakenship (Administrator)

Last week, the White House released President Biden’s blueprint for the FY 2023 federal budget. The President’s budget recommendations include a total of $5.8 trillion in federal spending and plans to reduce the federal deficit by $1 billion over the next decade. A few of President Biden’s tax proposals could have implications for nonprofits, including:

  • A provision clarifying that a contribution from a private foundation to a donor advised fund (DAF) does not count toward the foundation’s 5% payout requirement unless (a) the DAF funds are expended as a qualifying distribution by the end of the following taxable year and (b) the private foundation maintains adequate records. The goal of this provision is to ensure that private foundations are transparent in their grantmaking. 
  • A proposed Billionaire Minimum Income Tax (20%) on taxpayers with incomes exceeding $100 million. The Administration estimates that the new tax would raise $360 billion over the next decade. 
  • Proposed changes to estate and gift taxes and capital gains taxes that could encourage more donors to consider making bequests to nonprofits. 

The President’s budget recommendations are not binding on Congress, but they highlight some of the Administration’s tax, spending, and policy priorities for the upcoming year.

 
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info@louisiananonprofits.org
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Baton Rouge, LA 70821

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