Washington Snapshot - September 19, 2014
Keeping Up the Pressure on the America Gives More Act
Spruill to Senate: Take Action on the America Gives More Act
On Monday, Vikki Spruill strongly urged the United States Senate to vote on the America Gives More Act. In an op-ed for The Hill, she emphasized the importance of the legislation for America's communities.
"The America Gives More Act ensures that nonprofits are supported by Washington and not constrained by outdated policies. I am speaking out with my colleagues in the field, to urge the Senate to act as soon as possible to support philanthropy in America."
The Hill is widely read by Members of Congress and their staff, which makes it an ideal platform through which to amplify our message: Our communities are counting on you; pass the America Gives More Act and help us protect giving!
Earlier this month, the Council also sent a letter to all U.S. Senators asking for their support. Spruill also authored an op-ed in The Chronicle of Philanthropy last month.
Sector Leaders Continue to Speak Up
In The State Journal, Paul Daugherty, President and CEO of Philanthropy West Virginia writes “The America Gives More Act enables foundations and nonprofits to obtain more private resources to invest and do more in our communities.” Daugherty goes on to talk about several projects happening in West Virginia, including a partnership between several foundations and municipalities that “are creating solutions with long-term strategies for prosperity and opportunity for the region's citizens.” He stressed the importance of passing this legislation and asked Senators Jay Rockefeller (D-WV) and Joe Manchin (D-WV) to advocate for the bill.
Sue Ellen Riesau, Executive Director of the Olympic View Community Foundation wrote an op-ed in the Sequim Gazette urging Senate action on the America Gives More Act. “Foundations are rooted to the communities they serve and are uniquely able to combine resources across sectors to address emerging and ongoing needs. The Olympic View Community Foundation (OVCF) is proud of the work we do in the nonprofit sector of Clallam County, often with a wide array of partners and collaborators.” She goes on to ask Senator Patty Murray (D-WA) to urge action on the bill.
In a letter to the editor of The State Journal Register, John Stremsterfer President and CEO of the Community Foundation for the Land of Lincoln writes, “With improved public policy to further encourage charitable giving, we can deploy even more resources for the betterment of our community.”
Congress Adjourns Until After Election
On Thursday, the House and Senate adjourned until after the mid-term elections. They are not expected to be back in Washington until November 12, which will be the beginning of the lame duck session. Before leaving town, the House and Senate passed the Continuing Resolution (CR), which will fund the government until December 11, 2014. The CR easily passed the House and Senate, since members are looking to get out of town and avoid a government shutdown.
Even though the Senate has adjourned until after the election, we have to keep up the momentum on the America Gives More Act (H.R. 4719)! Over the past few weeks countless foundations and charities from across the country have told their Senators how important the America Gives More Act is. We have to keep that drumbeat going. When Congress comes back in November they will only have about three weeks to work before they adjourn for the year, and we need to push for a floor vote during that time.
While your Senators are home in October to ask for votes, make sure you tell them to ask Majority Leader Harry Reid and Minority Leader Mitch McConnell to bring the America Gives More Act to the floor for a vote during the lame duck! The Council’s advocacy toolkit has everything you need to make your voice heard.
Other Happenings on the Hill
What is the Future of Tax Extenders
The fate of the tax extender package the Senate passed back in April is still unclear. As you will recall this bill included almost all of the 55 “tax extenders” (temporary tax provisions), including the three that are important to charitable organizations – the IRA charitable rollover, deduction for gifts of conservation easements and deduction for gifts of food inventory.
This week Senate Finance Committee Chairman Ron Wyden (D-OR) made a statement saying it is “time to revive the EXPIRE Act and renew these important tax provisions while we push ahead on comprehensive reform.” On Thursday, Senate Majority Leader Harry Reid (D-NV) stated that he hoped to pass a tax extender package during the lame duck session. “We have to do the tax extenders” said Reid.
Over in the House, we wait word on how Ways and Means Committee Chairman Dave Camp (R-MI-4) will address extenders. As illustrated by the America Gives More Act, Camp aims to make permanent provisions that he believes represent good tax policy. It remains to be seen how Chairmen Wyden and Camp will resolve these different approaches to addressing extenders. We’ll be engaging in the extenders process as it unfolds over the next few months.
Wyden asks Speaker Boehner to Work with him on Tax Reform
In POLITICO on Monday, Senate Finance Committee Chairman Ron Wyden (D-OR) asked House Speaker John Boehner (R-OH-8) to “sit down together and figure out how to get tax reform done.” Wyden lays out several reasons why the tax code is out of date and must be fixed.
Wyden concludes: “I enjoyed working with the speaker when we were both in the House. My door is wide open and there is plenty of work to be done on a bipartisan basis. And so, Speaker Boehner, let me know a time that works for you, and I’ll bring along some of Oregon’s best pinot noir.”
Speaker Boehner Addresses Tax Reform at AEI
The overarching message to reform the tax code was clearly trending this week. On Thursday at the American Enterprise Institute (AEI), House Speaker John Boehner (R-OH-8) outlined his five-point economic plan. Item number one in that plan is tax reform.
Boehner said “Let’s fix the whole tax code. Make it pro-growth and pro-family. Bring down the rates for every American, clear out all the loopholes, allow people to do their taxes on two – yes, two – sheets of paper.” He also urged the passage of Chairman Camp’s tax reform discussion draft.
New Data on Charitable Giving
Camp Plan Would Slash Charitable Giving Says Urban-Brookings Tax Policy Center
Committee Chairman Camp’s tax reform discussion draft would have a drastic impact on charitable giving according to a new study from the Urban Institute Center on Nonprofits and Philanthropy and the Urban-Brookings Tax Policy Center. As The Hill points out, Chairman Camp’s plan “would slash charitable giving by as much as $34 billion a year.”
This study is important because it looks at how different provisions in the Camp discussion draft interact with each other. After comparing four groups of provisions in the plan, the authors conclude that giving would decrease by as much as 14%. Changes to the standard deduction alone could decrease charitable giving by nearly 2%.
The new research reminds us how important it is to educate lawmakers about the importance of charitable giving and the aggregate influence of changes in individual tax provisions as they look set to consider tax reform again this spring.
Trending in Legal Affairs
Granting Scholarships to Non-Citizens
Making grants to individuals is a time-honored tradition for many community foundations. But these grants are not always easy to make. So, it‘s no surprise that Council’s Legal Affairs team receives multiple inquiries daily on this topic, and many of those address scholarships.
More specifically, the questions often address the scholarship applicant him - or herself. As America’s landscape and demographics change, many community foundations have considered implementing policies to meet the needs of their changing communities, namely granting scholarships to non-citizens.
For example, a community foundation member out West asked the following question:
We don’t have a policy that addresses this, so I’m wondering if you recommend that we implement one, and/or whether an IRS regulation or federal law addresses this: can we award a scholarship to a non-US citizens/undocumented student?
Legal Services responded:
The community foundation may make scholarship assistance available to undocumented students. There are no special rules on this. As a private actor using private funds, the community foundation is not barred from awarding scholarships to undocumented students. The legal restrictions that some states have adopted are limitations on state colleges and universities.
With respect to implementing a policy, if you were to set up one you must be careful that it isn’t construed as discriminatory. This is a complex issue, and the Council cautions that limiting scholarships to US citizens only could be problematic because many students are legally in this country but are not citizens. Therefore, US citizen restriction could be viewed as discriminatory. In implementing a policy, the Council generally recommends following the same criteria that applies to federal student aid.
Of course, we urge you to also consult with your organization’s legal counsel to address unique circumstances, nuances of state law and other specific issues.
We remind all Council members that the Legal Affairs team is an important resource that may help with both the day-to-day and the confounding issues that come your way. In future issues of Snapshot, we’ll continue to cover topics that are trending among our members. In the meantime, don’t hesitate to reach out to us at legal@cof.org.
Philanthropy News and Op-Eds
100 Years of Community Foundations
The value of community foundations is the subject of a recent The Denver Post article. It details the complexity of community foundations work while celebrating their importance.
C. Albert Ruesga, President and CEO of the Greater New Orleans Foundation explained, that many of today’s foundations “straddle two worlds that frequently come into conflict: the world of wealthy trustees, and the world of grantees who have little appetite for sustaining the status quo.”
The article highlighted that community foundations understand their communities, act as a convener, are a source of community knowledge, and provide donors with a variety of giving tools that connect the donor to their community.
Social Innovation Fund Awards 7 New Grants
The Social Innovation Fund (SIF), administered by the Corporation for National and Community Service, awarded seven new grants this week. Among the winners were The Boston Foundation and the Silicon Valley Community Foundation.
"We really wanted to have a return to big ideas, the bold solutions that were about bringing the community together to solve problems." said Michael Smith, director of the Social Innovation Fund. According to the program, SIF “champions groups with proven ideas, and grantees and subgrantees are required during the application process to show that their programs are producing results and can be expanded.”
Events
CEO Retreat: Donor Advised Funds and Public Policy Preconference in Cleveland
Attention Community Foundation CEOs:
Join your colleagues in Cleveland on Sunday October 19th from 10am to 4:30pm for a discussion about donor advised funds and public policy.
Through our conversations with community foundation leaders and other stakeholders, we’ve heard an increasing demand for a high-level in-person meeting with community foundation leaders on how to best respond to harmful policy proposals—specifically, a proposed 5-year payout for all donor advised funds. Community foundation leaders attending the retreat will assist in developing a multi-year tax reform campaign for community foundations. The second half of the retreat will provide opportunities for robust discussion and networking.
Participation in this event is limited to Community Foundation CEOs.
Federal Scientists and University Researchers to Discuss Climate Change Impacts with Community Foundations
The Council’s Public-Philanthropic Partnership office will present a dynamic pre-conference program on climate change impacts on Sunday October 19, 2014 at the fall conference for community foundations in Cleveland. The session entitled Communities Confronting Climate Impacts will address the pivotal role that community foundations can play in helping communities confront the challenges of climate variances. The program will bring university researchers and federal agency scientists together with two panels of community foundation leaders to explore the ways to achieve integrated strategies across the public, philanthropic, and business sectors. The pre-con is not limited to conference attendees; any interested funders may attend. Contact Stephanie Powers at stephanie.powers@cof.org for more information or to register. Registration fee - $75.
NASCO Conference on October 6th
The National Association of Attorneys General/National Association of State Charity Officials' Annual Conference, “The Evolving Role of Charitable Regulation in the 21st Century,” will take place on October 6, 2014 at the Hyatt Regency Capitol Hill in Washington, D.C.
This year’s conference discussions will focus on how charitable regulation is evolving and adapting to the ever-changing nonprofit landscape. Topics will include emerging issues under UPMIFA, regulator-sector opportunities for collaboration in addressing disaster relief, examining the way charities are evaluated by watchdog agencies, and questioning whether charities are, in the traditional sense, still charitable.
You can register here.
