Board Approves Formal Position on the Excise Tax
After careful consideration, the CNJG Leadership and Policy Committee recommended the Council’s Board of Trustees should adopt the following formal position:
The Council of New Jersey Grantmakers supports simplification of the private foundation excise tax on net investment income to a flat rate.
The Committee believes a flat rate would remove uncertainty and simplify the process. A flat rate could also potentially encourage grantmakers to give more. The Committee stressed that the issue is not to necessarily lower the tax burden on private foundations, but to simplify the process. Therefore, the Committee did not endorse a “specific” rate such as the 1% rate, but simply recommended endorsing a “flat rate.” The Board agree and adopted the formal position at the October 23rd Board meeting.
For a concise overview of the excise tax issue, click here.
For additional information, please contact Theresa Jacks.