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Tuesday, September 27, 2005

Panel on the Nonprofit Sector Issues Supplemental Recommenda
The Panel on the Nonprofit Sector invites the nonprofit community to comment on the draft recommendations it is considering for inclusion in a special supplement to the Final Report. The Panel’s Work Groups and its Expert Advisory Group deliberated throughout the summer on such key issues as proposed federal regulation of charitable solicitations, international grantmaking, consumer credit counseling agencies, and prudent investor rules. The Panel will consider comments as it prepares the additional recommendations it will submit to the leaders of the U.S. Senate Finance Committee in October. The comment period will end Friday, September 30.

For the supplemental recommendations

Posted by Jennifer Lowe, 01:28:53 PM

Donor Intent Restrictions Stymie Charities
From the Washington Post:

Much of the $1.1 billion donated to charities to help the victims of Hurricane Katrina may be unavailable to assist those affected by Hurricane Rita because of legal limits on how the organizations can use the money.

Rita is widely expected to cause significant damage along the Gulf Coast when it slams into the Texas shoreline late today or early tomorrow. But laws in most states requiring charities to honor donors' intentions will hamper the charities' ability to use money raised for Katrina victims to aid survivors of Rita, relief organizations and legal experts said yesterday.

Posted by Jennifer Lowe, 01:22:25 PM

Monday, September 26, 2005

CARE To Be Re-introduced in Senate and House
Senator Santorum and Senators Lieberman have announced that they will propose a new CARE Act on Tuesday, September 27. This bill will be a freestanding piece of legislation containing key portions form the earlier CARE Act. A draft bill and a Dear Colleague letter has been circulating through Senate offices since Friday. Provisions of this new CARE Act include the non-itemizer tax deduction, the IRA rollover provision, the corporate tax deduction for certain food donations, corporate tax deduction for donated books, $150 million for the Capital Compassion Fund for capacity building, and over $1 billion additional funding for the Social Services Block Grant.

The Charity, Aid, Recovery, and Empowerment (CARE) Act was first proposed in both the 108th and the 109th Congress. While it received significant bipartisan support, the bill became mired in partisan politics. The CARE Act was reintroduced as part of an existing bill the MORE Act (S. 6).

Earlier this month, certain provisions of the CARE Act were incorporated into the Katrina Emergency Tax Relief Act of 2005 (H.R 3768). Unfortunately, the hurricane relief bill is only a a short-term quick-fix limited in scope and duration.

This new CARE Act will be a stand-alone bill incorporating many of the old CARE Act provisions - and unlike the hurricane relief bill, the new CARE Act will address the long-term needs of the charitable sector, by improving incentives for charitable giving.

Additionally, a companion bill will be introduced shortly in the House by Reps. Blount (R-MO) and Ford (D-TN).

Posted by Jennifer Lowe, 05:42:46 PM

Thursday, September 22, 2005

Katrina Volunteer Protection Act News
In OMB Watch's last Watcher, we mentioned Chairman Sensenbrenner's Katrina Volunteer Protection Act, that was passed by voice vote in the House.H.R. 3736, the Katrina Volunteer Protection Act, authored by Rep. James Sensenbrenner (R-WI).The act establishes a uniform federal floor to protect ad hoc volunteers working in response to Hurricane Katrina. The legislation was enacted to protect volunteers who act in good faith and without compensation to assist the victims of Hurricane Katrina from lawsuits unless the volunteer acts in a willful, wanton, reckless, or criminal manner or violate a State or Federal civil rights law.

The current federal Volunteer Protection Act does not provide any protection to volunteers who are not working under the auspices of a nonprofit organization, and it provides no protection at all to nonprofit organizations themselves.Consequently, outside of Katrina relief efforts, there are few legal protections for volunteers or nonprofit organizations. Only an extremely small percentage of the some 1.4 million nonprofit organizations in the United States actually purchase liability insurance, due to excessive costs.

As theLos Angeles Times recently reported, “The lack of liability protection was one of several concerns delaying some 900 churches from joining the evacuation network.” According to recent press accounts, the Red Cross feels constrained in giving out the names of refugees to those who want to offer their homes for shelter because of liability concerns.

We hear that Sen. Ensign is pushing to get the Katrina Volunteer Protection Act over in the Senate. This would be good news to the many nonprofits that are utlizing much-needed volunteers in the disaster area.

Posted by Jennifer Lowe, 03:27:03 PM

Ornstien on Abramoff
Norm Ornstien in Roll Call on Abramoff:

Now on to Abramoff. Yet another shoe dropped on Monday in this ongoing saga: the arrest of the White House’s top procurement official on charges of making false statements and obstructing an investigation related to Abramoff and the General Services Administration.

Based only on what we know now, this whole matter stinks to high heaven. The official, David Safavian, accompanied Abramoff and Rep. Bob Ney (R-Ohio) on the now-infamous golfing trip to Scotland, and, according to the charges, apparently helped an unnamed lobbyist (guess who?) in his attempt to acquire GSA-controlled property.

It is growing increasingly clear that Abramoff’s behavior as a lobbyist set new levels for sleaziness and that he spread his tawdry net far and wide, roping in many Members of Congress, a number of high-profile conservative activists outside the government and now, it appears, even players in the executive office of the president. Federal investigators and prosecutors are not going to let go of this story and they have a trail of e-mails and documentary evidence, and also the likelihood that some of the figures in this sorry saga will turn on others to save their own necks or reduce their sentences.

It is a tale of arrogance, greed and venality that comes right out of the Gilded Age. It may well topple some major figures in Congress and others along the way. And it could be a catalyst for a broader populist reaction in the country.

But in the meantime, we will keep most of our focus on the aftermath of Katrina, and especially the huge reverberations that will flow from the president’s pledge in his speech. The sweeping call for reconstruction of New Orleans and the rest of the Gulf Coast, along with the promise to make the area a new opportunity zone with dramatically different social policies and a new role for government, could provide a regional rival to the New Deal in its scope.

Go check out the whole article.

Posted by Jennifer Lowe, 10:51:16 AM

FBI Investigating Katrina Web Scams
"FBI Director Robert Mueller said Wednesday that the FBI has launched 31 investigations of websites that may be falsely claiming to raise money to help victims of Hurricane Katrina," USA Today reports. "Mueller said the FBI, with the help of legitimate relief organizations, has checked out 3,000 of 4,600 websites that are soliciting donations to help displaced people."

Posted by Jennifer Lowe, 08:50:43 AM

Wednesday, September 21, 2005

Katrina Tax Legislation Deal Reached
Top House and Senate tax writers Sept. 20 reached a deal on a package of tax incentives (H.R. 3768) intended to help provide the victims of Hurricane Katrina cash, housing, and employment.

Senate aides said the measure would be on the floor Sept. 21. A House Ways and Means Committee news release also said a floor vote would occur Sept. 21.

There are charitable contribution provisions in both the House and Senate bills. Find out more about here.

Posted by Jennifer Lowe, 11:31:43 AM

Friday, September 16, 2005

IRS Katrina Guidance
From the IRS website:

Citizens seeking to make donations to help Hurricane Katrina victims should seek out qualified charities, the Internal Revenue Service said today.

People who have a specific charity in mind can make sure that it is a qualified charity by searching an IRS-approved list available on the IRS Web site. IRS.gov has an on-line search feature that allows people to find qualified charities. Some organizations, such as churches and governments, may be qualified even though they are not listed.

The IRS does not endorse any charity. However, the Federal Emergency Management Agency has urged citizens to make cash donations to volunteer agencies with whom it is working. The government’s official Web portal, FirstGov.gov, also contains disaster-relief information.

In addition, the IRS has prepared Publication 3833, Disaster Relief: Providing Assistance Through Charitable Organizations, that may be helpful for people who want to make contributions or who want to form a new charity.

“We encourage citizens to make sure their contributions are put to the best use possible to help Hurricane Katrina victims,” said IRS Commissioner Mark W. Everson. “The IRS will do everything possible to assist both taxpayers and charities in this difficult time.”

The IRS also issued these following reminders to citizens and charities:

• IRS Disaster Relief main page
• Publication 78, lists charities with tax-exempt status, and a searchable on-line version is available through IRS.gov
• Publication 526, Charitable Contributions, provides information on making contributions to charities
• Taxpayers may claim a deduction for contributions to charitable organizations only if they itemize deductions on Schedule A of their Form 1040. They should retain proof of the contribution and, if the amount is $250 or more, must obtain an acknowledgement from the charity for the amount to be deductible.

Posted by Jennifer Lowe, 05:41:05 PM

Form Used by Nonprofits to Report Vehicle Donations Availabl
IRS Form 1098-C, used by tax-exempt organizations to report contributions of qualified vehicles, is now available. Further information about donations of motor vehicles, boats and airplanes, including links to the new form and IRS guidance, can be found on the IRS website.

Posted by Jennifer Lowe, 05:36:18 PM

Tuesday, September 13, 2005

Summary of Santorum Hearing on Charities
The Council on Foundations just posted a summary of Santorum's hearing this morning on charities. If a transcript is released, we will post it.

Posted by Jennifer Lowe, 05:49:36 PM

Press Conference on Combating Charity Fraud

NEWS ADVISORY

Contact: Department of Justice, 202-514-2008

Alice S. Fisher, Assistant Attorney General for the Criminal Division; Chris Swecker, FBI Assistant Director of the Criminal Investigative Division; and Mary Elcano, American Red Cross General Counsel, will hold a press conference on efforts to combat fraud related to Hurricane Katrina charitable donations TODAY, SEPTEMBER 13, 2005 at 1:30 p.m. EDT.

WHO:

-- Alice S. Fisher, Assistant Attorney General for the Criminal Division

-- Chris Swecker, FBI Assistant Director of the Criminal Investigative Division

-- Mary Elcano, American Red Cross General Counsel

WHEN: Today, September 13, 2005 at 1:30 p.m. EDT. Media must pre-set by 1 p.m. EDT

WHERE: 7th Floor Conference Room, Department of Justice, 950 Pennsylvania Ave., N.W.

Washington, D.C. 20530

NOTE: ALL media MUST PRESENT GOVERNMENT-ISSUED PHOTO ID (such as driver's license) as well as VALID MEDIA CREDENTIALS. Media interested in attending the event must pre-set by 1 P.M. EDT. All press inquiries regarding logistics should be directed to Matthew Roper at 202-514-2007.

Posted by Jennifer Lowe, 12:23:10 PM

Friday, September 09, 2005

Santorum to Hold Hearings
On Tuesday, September 13, 2005 at 10:00 am, the Senate Finance Committee’s Subcommittee on Social Security and Family Policy will hold a hearing titled, “Charities on the Frontline: How the Nonprofit Sector Meets the Needs of America’s Communities.” The hearing will take place in Room 106 Dirksen Senate Office Building

The Subcommittee, which is chaired by Senator Rick Santorum (R-PA), is expected to focus on the importance of the U.S charitable sector, the sector’s response to Hurricane Katrina and the need for Congress to enact the charitable giving incentives contained in the CARE Act. While charitable reform is not the focus of the hearing, we expect a number of Senators to ask questions related to the Senate Finance Committee’s reform proposals. The following witnesses will testify:

Luke Hingson, President, Brother’s Brother Foundation, Pittsburgh, PA

Major George Hood, Director of National Community Relations and Development, The Salvation Army, Alexandria, VA

Dr. Bob Reccord, President and CEO, North American Mission Board, Southern Baptist Convention, Alpharetta, GA

Dr. William G. Gale, Senior Fellow, The Brookings Institution, Washington, DC

Dr. Eugene Steuerle, Senior Fellow, Urban Institute, Washington,

Posted by Jennifer Lowe, 01:26:12 PM

Charitable Incentives Provisions
Senate Finance Committee Chairman Charles Grassley (R-IA) is now looking to attach charitable reform and incentive proposals to two major pieces of legislation that Congress will consider in the coming months. One expected legislative vehicle is a relief bill to aid victims of Hurricane Katrina that will move quickly starting next week. According to Senate Finance Committee staff, some of the provisions being discussed for the relief bill include funding for information sharing between federal and state governments, funding for electronic filing and incentives for donations of food and books (similar to those contained in the CARE Act).

Budget reconciliation legislation, expected to move in October, is the other legislative vehicle being considered by Chairman Grassley. Grassley and Senator Rick Santorum (R-PA), sponsor of the CARE Act in the Senate, met this week and discussed attaching the CARE Act (including the IRA charitable rollover provision) and charitable reform proposals to the budget reconciliation bill. Senate Finance Committee staff are still trying to determine what reform proposals will be included in the legislation, though they have indicated that a number of the proposals will mirror recommendations included in the Panel on the Nonprofit Sector’s final report.

Posted by Jennifer Lowe, 01:23:44 PM

Wednesday, September 07, 2005

Getting and Keeping Donors A Challenge as Accountabiliy Bill
While the nonprofit industry as a whole confronts concerns about accountability, getting and keeping new donors remains the biggest challenge facing individual nonprofits, a new study says.

Blackbaud, a Charleston, S.C.-based software company serving nonprofits, conducted an online survey of 1,000 U.S. nonprofit professionals to determine the challenges they face.

Almost half of those surveyed say accountability to their constituents and regulators is one of their three biggest concerns, the survey says, but almost two in three nonprofits say recruiting and keeping donors is their greatest challenge.

More than one in three say an increasing number of their donors are asking for information on how their donations were spent, but almost all nonprofit professionals say they believe their donors trust them to use donations appropriately.

Two in three groups say they proactively provide donors with information on how their contributions are used, more than nine in 10 have audited financial statements, and seven in 10 have created audit committees, the survey says.

Posted by Jennifer Lowe, 09:18:51 AM

Tuesday, September 06, 2005

Charitable Legislation Slated for October
After a brief emergency session to consider funding for hurricane relief last week, Congress begins its busy fall schedule today. While Senate Finance Committee Chairman Charles Grassley (R-IA) and Ranking Member Max Baucus (D-MT) are still expected to introduce charitable legislation this fall, the busy September schedule may push back the introduction of the bill until October. Grassley is also a member of the Senate Judiciary Committee, which will now be considering appointments for two vacancies on the Supreme Court after the death of Chief Justice William Rehnquist.

Posted by Jennifer Lowe, 03:23:09 PM

More Payola...
WASHINGTON, D.C. — The Department of Education has paid education advocacy groups to produce newspaper opinion pieces, advertisements, and other public materials that reached audiences all over the country without revealing that the government paid for their production and distribution, according to a report issued late last week by the Department’s Inspector General that concluded that such practices were improper.

Rep. George Miller (D-CA), the senior Democrat on the House Education and the Workforce Committee, requested the report in January. Miller said the report raises two key concerns: first, that it describes the consistent use of covert propaganda by the Department of Education over a period of years; and second, that it shows a disturbing pattern of neglect on the part of the Department when it comes to properly overseeing its grants and contracts.

For more on this story

Posted by Jennifer Lowe, 01:05:44 PM

Thursday, September 01, 2005

IRS Website Updated on Tax-Exempt E-Filing

The Internal Revenue Service Aug. 31 updated its electronic filing Web page for corporations and exempt organizations that must e-file in 2006.

The long-awaited Web site updates will help the organizations comply with proposed and temporary regulations (REG-130671-04, T.D. 9175) on electronic filing and, according to practitioners, make the site more user-friendly.

IRS in January issued the temporary and proposed regulations on requirements for e-filing of income tax returns by large corporations and annual information returns by certain tax-exempt organizations (8 DTR G-13, L-5, L-10, TaxCore, 1/12/05).

Effective for tax years ending on or after Dec. 31, 2005, the regulations generally require corporations with total assets of $50 million or more to electronically file Form 1120, U.S. Corporation Income Tax Return, or Form 1120S, U.S. Income Tax Return for an S Corporation, and tax-exempt organizations with total assets of $100 million or more to e-file Form 990, Return of Organization Exempt from Income Tax.

After releasing the regulations, IRS established a Web page to address questions it received regarding the new electronic filing requirements. The Web page included a link to frequently asked questions, as well as other general information regarding the requirements.

The new Web site provides an overview of electronic filing and more detailed information for corporations that prepare and transmit their own income tax returns, as well as information for tax professionals.

For more information, see the IRS website.

Posted by Jennifer Lowe, 02:33:16 PM

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