Washington Snapshot - October 25, 2013

Charitable Giving Coalition D.C. Fly-In - Nov. 20th

Join the Charitable Giving Coalition and your foundation and nonprofit colleagues here in D.C. on Wednesday, November 20^th as we meet with lawmakers and their staff to advocate for the charitable deduction!

Recent developments on Capitol Hill have elevated the importance of our efforts to protect charitable giving incentives. As policymakers begin the budget negotiations mandated in the agreement to end the government shutdown and suspend the debt ceiling, tax deductions will again be among the potential revenue-generating options they consider. And, leaders of the tax writing committees remain committed to comprehensive tax reform in which provisions like the charitable deduction are still at play. It is imperative for leaders in philanthropy and charity to continue to educate lawmakers on the impact of charitable giving on their local constituencies.

Check out the Council’s fly-in invitation for more information!

Federal Tax Reform Buzz

Tax reform is back in the headlines this week as policymakers turn their attention to long-term fiscal concerns.

House Ways and Means Committee Chairman Dave Camp (R-MI-4) is redoubling his behind-the-scenes work with committee members and their staff to draft a comprehensive tax reform bill. As we’ve mentioned in the past, Camp hopes to release some type of draft by the end of the year. Though, it remains to be seen whether his committee will mark up a full bill or produce something more abridged.

Senate Finance Committee Chairman Max Baucus (D-MT) has also been vocal about his intent to overhaul the tax code before he retires at the end of next year. Baucus hopes to release a "discussion draft" by the end of this year rather than a complete bill. Both Camp and Baucus prefer to tackle the individual and corporate tax codes in one reform effort, while the Administration has expressed greater interest in reforming the corporate code.

Regardless of the timeline for a bill, important policy decisions are being made this fall by these committees, and extensive lobbying efforts are underway by all types of interests groups. The chairmen still face an uphill battle. Congressional Republicans have stated that they want “revenue-neutral” reform, while the President and Congressional Democrats seek to increase taxes on businesses and high net worth individuals, possibly as an offset to eliminate the next round of federal spending cuts, known as “sequestration”, that are due to kick-in on January 15^th. The charitable deduction is in the mix as a potential revenue-raiser.

Leading tax professionals are not optimistic about the prospects for reform anytime soon. A recent Ernst & Young poll found that only 20 percent of tax practitioners and business executives believe that tax reform will be enacted by the end of 2014. Meanwhile, the “tax extenders” provisions, including the IRA charitable rollover, expire again in January 2014. These provisions expire each year and have been extended annually in past years, but some members of the tax-writing committees now insist that they will only take them up again in the context of broader reform. It isn’t clear at this point whether lawmakers will agree to another yearly extension if reform progress stalls.

One possibility for the tax extenders is that the House Ways and Means and Senate Finance Committees will let the budget conference committee handle them. We covered this committee in detail in last week’s Snapshot. Budget committee members are set to begin work soon on a government spending plan for the next fiscal year, with a deadline of December 13^th. The committee may dabble in tax reform and make recommendations for revenue-raising legislation, or even include reform instructions in the budget agreement. But many commentators are not hopeful that the committee will be able to reach an agreement.

Stay tuned for more tax reform and budget negotiation updates in the coming weeks as we catch the inside scoop on what is happening on Capitol Hill!

Noteworthy News

Knight Foundation debuts digital book

We offer our congratulations to our colleagues at the Knight Foundation, who debuted the digital book “Searchlights and Sunglasses” last week. Written by Knight’s Eric Newton, the book focuses on the major issues facing journalism today, and gives a blueprint for moving the field forward into the modern era. It also highlights the Knight Foundation’s grantmaking in the realm of nonprofit media. Check out the Council’s page on the work we’ve done with Knight to elevate nonprofit media and ensure that regulators understand its unique role and structure.

State-level developments

In January, a bill passed the Maine legislature that places a cap on the state charitable deduction. The Maine Association of Nonprofits reports that State Senator James Boyle recently introduced a bill that would preserve the charitable deduction in Maine by removing it from the cap on itemized deductions. In New York, the Nonprofit Revitalization Act of 2013 passed the state legislature this week. The Act seeks to improve nonprofit governance and enhance the oversight and accountability of nonprofits by the New York Attorney General. If signed by the governor, it will take effect in July, 2014.

HUD Secretary's Award for Public-Philanthropic Partnerships

Secretary of the U.S. Department of Housing and Urban Development Shaun Donovan and Council President and CEO Vikki Spruill recognized 10 philanthropic funders with the 2013 Secretary’s Award for Public-Philanthropic Partnerships. These organizations were recognized for enhancing the quality of life for low-income and moderate-income families. The projects addressed issues concerning housing and neighborhood improvements, education, health and recreation, transportation, arts and culture, public safety, sustainability and economic development.

We have been sharing with you the award winning projects over the past several weeks. Here are the next two winners!

Sisters of Charity Foundation of Cleveland - Housing First Initiative of Cuyahoga County

The Sisters of Charity Foundation of Cleveland works to improve the lives of those most in need with special attention to families and women and children living in poverty. Its funding priorities are in ending homelessness, reducing health and education disparities and supporting the ministries of women religious. In conjunction with many partners, the foundation is also the lead convener for a Promise Neighborhood in Cleveland’s Central Neighborhood. The foundation carries forward the mission of the Sisters of Charity of St. Augustine, who have served Ohio and South Carolina for over 160 years through a number of health and human services.

The Housing First Initiative of Cuyahoga County was convened in 2002 by the Sisters of Charity Foundation, in partnership with Enterprise Community Partners and the City of Cleveland-Cuyahoga County Office of Homeless Services, to develop a strategy to address long-term and chronic homelessness among single adults in Cuyahoga County—a problem that had reached crisis proportions.

The Sisters of Charity Foundation of Cleveland was featured on Cleveland.com.

United Way of Greater Los Angeles - Home for Good

Home For Good launched in December 2010 by United Way of Greater Los Angeles and the LA Area Chamber of Commerce, Home For Good is a five-year plan to end chronic and veteran homelessness by 2016. At its core, Home For Good is a collective impact model, engaging public and philanthropic organizations, nonprofits, and business and community members to create extraordinary transformation in our community.

Keep in touch!

Please feel free to reach out to any of us on the public policy team with any comments or concerns, or to share an issue, article, or op-ed you’d like to see covered in a future Snapshot.