"These proposals, if enacted, would severely reduce the ability of public charities to play their historic role of addressing public needs with private resources," the letter from the Alliance for Charitable Reform said. "Indeed, with regard to the large number of charities that are small institutions, it could put many of them out of business, while simultaneously discouraging the formation of new charitable organizations." Senate Finance Committee and Joint Committee on Taxation proposals floated this year would impose regulations on small institutions that only the largest institutions could satisfy, and make board members of charitable organizations--many of whom donate their time--subject to new federal liability standards and legal exposure, the letter said.

The groups have support from Sen. Rick Santorum (R-PA), who sent a letter to the Philanthropy Roundtable March 15 expressing that commitment and urging them to convene a group to inform the Finance Committee about the effects of its proposals and unintended consequences.

The Alliance's letter urged Frist to not allow proposals of the Finance Committee staff or similar proposals to come to the Senate floor.



Posted by Jennifer Lowe, 01:37:19 AM



Nonprofit Accountability in the News
The Senate Finance Committee is expected to hold another hearing on charities in early June. The hearing will focus on land donations, including the committee’s review of the operations of The Nature Conservancy and limitations on gifts of appreciated property.

Also, early next week, the Panel on the Nonprofit Sector will release its Phase II Work Group recommendations for public comment. The Panel will consider the Work Group recommendations and public feedback when drafting its June 2005 report to the Senate Finance Committee.

Posted by Jennifer Lowe, 01:11:51 AM



Senate Finance to Introduce Insurance Reform
Next week, Senate Finance Committee Chairman Charles Grassley (R-IA) and Ranking Member Max Baucus (D-MT) will introduce legislation aimed at reducing abuses in certain life insurance contacts involving tax-exempt organizations. The bill will target life insurance contracts that inappropriately afford benefits to private investors that would not otherwise be available without the charity’s involvement. In a May 3 Senate Finance Committee press release, Senator Baucus pledged to work with Senator Grassley, “to make sure that these insurance scams are shut down quickly.” While the Senate Finance Committee has been examining life insurance deals involving charities for some time, the issue was not mentioned in the committee’s June 2004 staff discussion draft.

Posted by Jennifer Lowe, 01:09:39 AM



Meehan Introduces Lobby Disclosure Bill
On May 4, 2005, Congressman Marty Meehan introduced the Lobbying and Ethics Reform Act of 2005. Meehan is joined in his effort by Congressman Rahm Emanuel, of Illinois' 5th Congressional District.

The bill has yet to be filed, but it is known that it contains provisions similar in nature to the Democracy in Congress Act, introduced by Meehan in the 108th Congress.

Of particular interest to nonprofits is that it redefines the term client in LDA to include coalitions. It requires members of anonymous coalitions to report their involvement. There is a 501(c) exemption that if an org has substantial exempt activities re the issue it has engaged the lobbyist, the coalition is treated as a client and not member organizations. Also, groups and individuals who contribute less than 1000 per semiannual period are exempt from disclosure requirements.

It also requires federal lobbyists to disclose the total amount on grassroots lobbying.

For more information, visit Meehan's website.



Posted by Jennifer Lowe, 01:06:44 AM