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Monday, July 31, 2006

Should Lobbyists Serve As Treasurers on Campaigns?
Interesting article in US News:

"It creates a huge conflict of interest for the members of Congress," says Alex Knott of the Center for Public Integrity. "They are going to be indentured to these lobbyists because they often rely on them for campaign fundraising." Lobbyists have served as treasurers of at least 68 campaign committees or joint campaign committees with other members since 1998, according to the center. It's unclear whether the number is increasing because reform groups have just started to track these relationships.

Charitable Provisions in Pension Bill - Passed House, Now On to Senate
Late on Friday night, the House approved pension reform legislation (H.R. 4), which includes a scaled-back package of charitable reforms and incentives. The incentives include the IRA rollover, and book and food deductions for charities. The legislation also includes some reforms aimed at the nonprofit sector. For a summary, click here.H.R. 4 now heads to the Senate for consideration. Because the bill is not a conference report, it is subject to amendment and potentially unlimited debate (i.e., “normal” order in the Senate). In addition, Majority Leader Frist has indicated he will allow a vote on the pension bill only AFTER another bill with tax “extenders,” minimum wage provisions and a permanent reduction in the estate tax bill is approved. So, final passage of the charitable provisions remains an uphill battle.

Posted by Jennifer Lowe, 05:24:02 PM

Ohio AG Drops Accountability Proposal
According to the Cleveland Plain Dealer:

Ohio Attorney General Jim Petro has revised his proposal to make hospitals and other charitable groups more accountable to the public, a month after proposing the new state rules.
In the second draft of the rules, released Friday, Petro dropped controversial recommendations for policies related to conflicts of interest, executive compensation and billing practices. Instead, said Brian Cook, chief deputy attorney general and head of the public-protection division, the latest proposal calls for a new advisory panel to recommend such model policies.

Posted by Jennifer Lowe, 04:38:36 PM

Friday, July 28, 2006

Extenders Package Contains Charitable Reforms and Incentives
From Council on Foundations:

A package of business tax cut extenders, the major sticking point in the pension negotiations, is expected to include some charitable reform and incentive provisions. And while a provision creating special rules for gifts of illiquid assets to donor-advised funds appears to have been dropped, the Council on Foundations has learned that lawmakers may exclude donor-advised funds from taking advantage of the IRA charitable rollover incentive. If this is indeed the case, we expect to have time to share our opposition to this restriction with Congress given the uncertainty surrounding the extenders package.

For more information, visit COF's Legislative Network.

Posted by Jennifer Lowe, 05:37:42 PM

GAO Report on CFC and Charities Payroll Taxes
Tax Debt: Some Combined Federal Campaign Charities Owe Payroll and Other Federal Taxes. GAO-06-887, July 28

Highlights - http://www.gao.gov/highlights/d06887high.pdf

Posted by Jennifer Lowe, 03:18:14 PM

Tuesday, July 18, 2006

Subcommitee Debate on Renewal of Office of Government Ethics
According to CQ (subscription required), Rep. Jon Porter's (R-NV) House Government Reform subcommittee will mark up a HR 5710, which would renew the Office of Government Ethics. New in the bill is a requirement that the Government Accountability Office study ways to improve the office, including the advantages and disadvantages of transferring its functions to some other part of the federal government.

The office’s current authorization (PL 107-119) is scheduled to expire at the end of fiscal 2006.

Posted by Jennifer Lowe, 09:36:41 AM

Wednesday, July 12, 2006

Grassley Specifies Nonprofit Issues in Need of Legislative Reform
In a letter to the Hill newspaper, Senator Charles Grassley (R-IA) identifies the issues he sees most pertinent in nonprofit reform. These are:

Excessive compensation perks, pay and sweetheart deals involving officers and directors.

Nonprofit groups that act more like for-profit businesses than charities.

Inappropriate political activity.

Lack of financial transparency and accountability to donors.

Nonprofit hospitals that do not provide adequate charity care and community benefits.

Tax-exempt organizations fronting as tax-shelters.

Donor-advised funds and supporting organizations being used by the wealthy to protect business assets and take big charitable tax deductions with little or no money actually going to public charities.

Charitable boards that are not engaged in their fiduciary responsibilities to ensure that the charity is operated appropriately and responsibly.

Posted by Jennifer Lowe, 01:19:11 PM

GAO Finds Some CFC Charity Recipients Might Not Be Legit
According to BNA:

About 200 of the 22,000 charities that participated in the 2005 Combined Federal Campaign, the nation's largest annual workplace giving program, have questionable exempt status and may not be legitimate charities under tax code Section 501(c)(3).
In addition, GAO said in testimony before the Oversight Subcommittee, it was able to create a bogus charity and successfully apply to three large local campaigns.
GAO investigated 15 CFC charities and found that all 15 engaged in abusive and potentially criminal activity by not forwarding payroll taxes withheld from their employees, along with other taxes, to the Internal Revenue Service.

Text of the GAO letter is at http://www.gao.gov/cgi-bin/getrpt?GAO-06-959R.

Posted by Jennifer Lowe, 11:01:46 AM

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