By Sara Barba and Ali Bedford
One of the key achievements the Trump Administration has been touting from the One Big Beautiful Bill Act, passed last year, is the creation of Trump Accounts. The attention these savings accounts are getting, both from the administration and the public, has created a unique opportunity for private philanthropy to show its value.
A Murky Perception of Philanthropy
The observation that nonprofits and philanthropy has been in the crosshairs of this administration is not a groundbreaking one. However, the charitable sector’s entry into the Trump Account arena shows that private dollars have a role to play in promoting children’s savings and financial security.
Just this week at the Trump Account Summit, donors like Michael and Susan Dell, Ray and Barbara Dalio, and Brad Gerstner were highlighted for their philanthropic pledges to Trump Accounts. The administration’s swift embrace of this private generosity has the potential to shift the government’s view of philanthropy’s role in supporting communities and individuals.
What Are Trump Accounts?
Trump Accounts – also referred to as Section 530A Accounts if you are a tax wonk – are savings vehicles intended to give children a financial foothold early in life. For children born between 2025 and 2028, the federal government will make a one-time $1,000 contribution to all Trump Accounts with the goal of encouraging long-term savings, investment, and greater financial literacy. All other children under the age of 18 are eligible for these accounts as well, though they will have to rely on contributions from their parents, parents’ employers, state governments, or philanthropists to fund them.
Although the accounts are not scheduled to become available until July of this year, they’ve already generated significant attention and financial commitments.
Treasury Guidance is Still Needed
As with all new tax policy, Treasury and IRS are now tasked with crafting rules for how best to implement, structure, and police these new accounts. Late last year, the agencies released a notice of proposed rulemaking that made one thing clear – the charitable sector is fundamental to this effort. The notice outlines that donor-advised funds, private foundations, and other 501(c)(3) organizations are eligible to contribute.
Treasury is accepting public comments through February 20.
Philanthropy Shows Up Early
Even before final regulations are in place, private philanthropic dollars have flowed to the accounts. So much so that Treasury has called for a 50-state challenge, urging other individuals and foundations to help fund Accounts nationwide.
The early momentum is notable, not just for its scale, but in the fact that charitable funders are committing dollars before the program officially launches and before rules are complete. That alone signals a powerful message – Trump Accounts are not being built with just federal dollars, but with private philanthropic capital. Seems to us like a compelling opportunity to educate the government about philanthropy’s impact.