December 15, 2023

What's Happening This Week...

• Happening at the Council
• What We’re Tracking in D.C.
• Federal Government Engagement Opportunities
• Happening in the States
• News, Resources, and Events

Happening at the Council

Building Together: Leading Collaboratively Across Differences
Building Together is a new immersive learning experience for philanthropic leaders who want to develop strategies and skills to bridge differences and counteract toxic polarization. Join us in Chicago from May 6-9 to be part of this experience. Applications for the Bridge Builder Scholarship close TODAY.

Fearless Foundation Amicus Brief
Philanthropic donations support our communities in ways that mirror our values, playing a key role in promoting civic engagement. We believe – and the courts have ruled – that philanthropic organizations and individuals have the right to exercise their views through giving, as protected by the First Amendment. That includes efforts to support historically marginalized groups.

That’s why the Council on Foundations and Independent Sector have filed an amicus brief in support of the Atlanta-based Fearless Foundation, an organization led by Black women that helps combat underfunding in venture capital by providing grants, tools, and mentorship to women of color. Read our brief, view a summary of the case, and join our sign on statement to support philanthropy.

Foundations on the Hill 2024
Join us in DC February 25-28, 2024 for Foundations on the Hill 2024. #FOTH2024 creates an opportunity for PSOs, foundations, and sector colleagues to assemble on Capitol Hill and at federal agencies to promote a strong sector and advocate for vibrant, healthy, and equitable communities. FOTH is presented by United Philanthropy Forum in partnership with the Council on Foundations and Independent Sector.

Happy holidays from the Council!
This will be our last Snapshot of 2023. We wish you and your loved ones a restful holiday season, and we’ll see you in January. 

What We're Tracking in D.C.

Ways and Means Subcommittee on Oversight Discusses Exempt Organizations
On December 13, the Ways and Means Subcommittee on Oversight held a hearing discussing the growth of the tax-exempt sector and its impact on U.S. politics. Much of the hearing focused on so-called dark money, as well as foreign donors funding U.S. nonprofits that inappropriately influence American political campaigns. The witnesses, which included University of Pittsburgh Professor Phil Hackney and Capital Research Center President Scott Walter, discussed existing channels of influence, current law, and the need for additional IRS funding to ensure adequate enforcement. The Council plans to submit testimony detailing existing safeguards protecting the nonprofit sector and preserving the integrity of our democratic process.

Reminder: Comments on the IRS’s proposed donor advised fund regulations are due January 16
As you know by now, the IRS recently released proposed regulations around donor advised funds. The proposal seeks to put in place key definitions that will be used as the basis for future regulatory action. Among the provisions, Treasury and IRS clarify the definitions of a DAF, donor, and donor advisor, as well as provide for limited exceptions to them. For example, there are carve outs from the definition of a DAF for scholarship funds and disaster relief funds in certain circumstances. The rules also provide clarification of advisory privileges and define a distribution.

View a recording of our webinar discussing the proposed rules. Comments are due on January 16, although we submitted a request for an extension to Treasury and the IRS earlier this month. To help inform our comments, please share feedback with govt@cof.org as soon as possible.

Federal Government Engagement Opportunities

• The IRS announced a new organizational structure aimed at streamlining tax administration. Heather Maloy, the current IRS Chief of Staff, will be the IRS’s new Chief Taxpayer Compliance Officer, which will oversee the Tax Exempt and Government division.
• The Department of the Interior and the White House Council on Native American Affairs announced a Request for Information around improving Tribal Nations’ access to capital, including both federal and non-federal grants. 

Happening in the States

Recapping Nonprofit State Policy Progress in 2023 
The news on federal policy has been frustrating for most of 2023, but the action in the states has been robust, engaging, and in many cases productive for nonprofits. To prove the point, the National Council of Nonprofits has created an interactive 50-State Nonprofit Policy Recap for 2023 that features nonprofit policy news and progress throughout the year through a series of eight maps.

Shaping the Debate: Reports That Are Making a Difference
Throughout 2023, new reports emerged that captured attention, informed the debates, and helped shape public policy in support of the missions of charitable organizations. Reports making a difference this year include those from AmeriCorps on volunteerism, Nonprofit New York on nonprofit leadership, Providers’ Council on the employment crisis in human services, the National Council of Nonprofits on nonprofit workforce shortages, and Americans for the Arts on the economic impact of the arts.  

News & Resources

• Technology built the cashless society. Advances are helping the unhoused so they’re not left behind, Associated Press
• FASB Issues Standard That Enhances Income Tax Disclosures, Financial Account Standards Board
• How Philanthropy is Helping Veterans Navigate the Workforce, Philanthropy Roundtable
• Philanthropy Is Stepping up to Advance Reparations and Racial Repair, Barrons 

Keep in Touch!

Please feel free to reach out to any of us on the Government Relations Team with comments or concerns, or to share an issue, article, event, or op-ed you would like to see covered in a future Washington Snapshot.

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