"Yet, the congressional officials in charge of implementing the new disclosure system have provided no guidance, forms, or even computer passwords that thousands of lobbyists will need to comply with the new disclosure system required by the Honest Leadership and Open Government Act of 2007."

This reporting will apply not only to lobbying firms and organizations with in-house lobbyists; individual lobbyists also will have to report their campaign contributions and payments to charities linked to officials. Lobbying organizations and individual lobbyists will use the new forms to report their contributions, as well as payments for events honoring government officials, or charitable contributions to entities linked to members of Congress.

Last week the California Assembly passed a bill that would require big foundations ($250 million in assets and more) to disclose the race, gender and sexual orientation of their board, staff, and even grantees and business contracts. The bill is now headed to the State Senate. The Chronicle of Philanthropy ($$) outlines what is included in the bill.

• The number of grants and percentage of dollars going to organizations where at least 50 percent of the board, of staff members, are members of ethnic minorities, or are lesbians, gays, bisexuals, or transgender people.
• A breakdown of the number of grants and percentage of dollars that go to organizations that serve different ethnic groups or sexual orientations, as well as the percentage of contracts awarded to businesses owned by members of those groups.

Reportedly, the measure was put forth by the Greenlining Institute, a public-policy organization in Berkeley that says foundations are too secretive about their giving and not enough awards go to organizations led by minorities. Many have come out in opposition, arguing that it would result in burdensome reporting requirements, and violate privacy rights.

For example this LA Times opinion piece claimed that if the Bush administration were to propose such a measure; "The criticism would be swift and unambiguous: This is absurdly intrusive and a violation of privacy. Foundations would organize to oppose any such legislation. . . . Imagine being the employee who has to ask each co-worker about his or her sexual identity and history. Many of these foundations have relatively small staffs; there won't be many secrets if this bill becomes law."

An editorial in the Wall Street Journal reports that the Greenlining Institute has already begun lobbying House Ways and Means Chairman Charlie Rangel (D-NY) for Congressional hearings. Orson Aguilar, associate director of the Greenlining Institute, was quoted in the Chronicle of Philanthropy article to say this "is just the first step in the group's plans to get lawmakers involved. 'We're definitely going to be putting pressure on Congress and the new [president] to look at this,' he said."

The Financial Times reports on some nonprofits' plans for the upcoming year in 2008. With a troubling economy and increasing income gap, a demand for service organizations will only increase, leaving behind concerns that the groups will have adequate funds. In response, many organizations will become more involved in the political debate, and hopefully lawmakers will have an understanding of the sector's needs. Accordingly, service organizations must lobby the government in a time of economic instability so that the needs of the poor and middle class are met.

And non-profit chiefs are more likely than ever to lobby Washington. "[The Salvation Army] is getting involved with public policy in a non-partisan way. We are apolitical, but all of the issues that face society are impacted by politics," Gaither says. "It's about being a voice for the voiceless."

In pursuing their varied missions, many non-profits are working to cultivate local grassroots support while also broadening their national and global reach. Simultaneously with the launch of national media campaigns, the ACS [American Cancer Society] has trained cancer survivors from all 435 congressional districts to explain pressing policy changes that could facilitate a cure for cancer.

Posted by Amanda Adams, 01:44:27 PM

Tuesday, November 27, 2007

Bills Extend IRA Charitable Rollover to Promote Charitable Giving

The House of Representatives passed HR 3996, the Responsible Tax Relief Bill earlier this month. In doing so, the tax incentive that allows taxpayers age 70 1/2 to make tax-free charitable contributions from their IRA accounts was extended for another year. BNA Money and Politics ($$) reports that, "the Senate will be talking about a two-year extension of the individual retirement account rollover provision for charitable giving when it takes up H.R. 3996 the week of Dec. 3."

Posted by Amanda Adams, 06:03:09 PM

Friday, March 23, 2007

Bill Would Extend IRA Giving Provision

Senator Byron Dorgen (D-ND) and Representative Earl Pomeroy (D-ND) have introduced companion legislation, the Public Good IRA Rollover Act (S.819 and HR1419). This would permanently extend a tax break passed as a part of the Pension Protection Act of 2006 that allows older Americans to donate money directly from their Individual Retirement Accounts (IRA). The provision passed last year would expire January 1, 2008. A recent article in Forbes discusses how there is seemingly large support for the measure from the charitable sector.

Charities are already lobbying Congress to expand and make permanent a temporary tax break that allows older folks to donate money directly from their Individual Retirement Accounts. . . . The proposed law would remove the $100,000 limit, allow contributions to all charities--including donor-advised funds, supporting organizations and private non-operating foundations--and allow donors age 59 1/2 and older to use the provision to fund lifetime gifts such as charitable gift annuities.

Posted by Amanda Adams, 02:50:07 PM

Thursday, August 24, 2006

United Way Summary of Charity Provisions of New Pension Law
From United Way:

United Way of America today released a preliminary review of the charity-related provisions in the Pension Reform Act of 2006, signed into law by President Bush on August 17.

To see the review onlineclick here

Posted by Kay Guinane, 01:37:15 PM

Monday, August 21, 2006

President Signs Bill on Charities
From the IRS website

On August 17, the President signed the Pension Protection Act of 2006. The new law contains numerous changes to the tax law provisions affecting tax-exempt organizations. Key provisions include the following:

• Controlling organziations must report income from and loans to controlled organizations as well as transfers between controlled and controlling organizations. This provision is effective for returns due (without regard to extensions) after the date of enactment.*
• Section 501(c)(3) organizations must now disclose unrelated business income tax returns (Forms 990-T) and make them available for public inspection. This provision is effective for returns filed after the date of enactment.
• Private foundation and excess benefit penalty excise taxes are doubled.
• Donor advised funds, supporting organizations, and credit counseling organizations are subject to new requirements.
• Charitable contribution deductions for food, book, and certain conservation property are increased.
• Charitable contribution deductions for monetary donations, certain easements, taxidermy property, clothing and household goods, and certain other items are limited.
• Beginning in 2008, exempt organizations with gross receipts under $25,000 must file an annual notice.

Posted by Kay Guinane, 03:51:28 PM

Friday, August 11, 2006

IRS To Audit Utah Foundation With Ties to Leavitt Family
According to the :

The Internal Revenue Service plans to audit a Utah foundation that has ties to the Leavitt family, which includes the U.S. secretary of health and human services, Mike Leavitt.

Posted by Jennifer Lowe, 09:32:40 AM

Wednesday, August 09, 2006

Donors Are Scared to Send Money for Lebanese Relief
There are donations of food and medicine for Lebanon, but charity leaders are finding that no one wants to give them money. Why?

From the Washington Post:

The problem, according to relief groups, is that many people who are inclined to write checks for emergency aid and reconstruction in Lebanon are afraid of ending up in some government database of suspected supporters of terrorism.

[...] Arab American leaders say this is one of the unintended consequences of the U.S. government's crackdown on charities run by Muslims. Though aimed at cutting off illicit funding for terrorist groups, the crackdown has complicated legitimate humanitarian relief efforts in Lebanon, Gaza and the West Bank.

Monday, August 07, 2006

Detailed Technical Explanation of Charitable Provisions in Pension Bill
The House Joint Committee on Taxation has released a detailed summary of the Pension Bill. The charitable provisions begin on page 263.

Posted by Jennifer Lowe, 04:24:43 PM

Friday, August 04, 2006

Senate Passes Pension Reform, Sent to President for Signing
From National Journal's Earlybird:

Congress passed major pension legislation designed to assure American workers, including millions of baby boomers nearing the end of their working careers, that the pensions they have been promised will be there when they retire," AP reports. "The Senate, in its last vote before adjourning for a four-week summer break, approved the 900-page bill that compels employers with defined-benefit pension plans to meet their funding obligations and seeks to prevent companies from terminating plans and shifting the financial burden to the taxpayer."

The pension bill contained many charitable incentives and reforms, as detailed in earlier blog postings. Guidestar also has a nice summary.

The AP story can be found here.

Posted by Jennifer Lowe, 11:00:15 AM

Wednesday, August 02, 2006

Frist on Pension Bill
Today on the Senate floor, Senate Majority Leader Bill Frist called the House-passed pension reform bill (H.R. 4) “must-pass” legislation, claiming the Senate will clear the bill by the end of this week.

Senator Frist said, “It's just this simple: The pensions bill is must-pass. Must-pass!” He added, “The Senate must clear the pensions bill, clean, so the President can sign it this month. We will act, and pensions will get done, without amendment.”

For more, see www.501cstrategies.com.

Posted by Jennifer Lowe, 04:17:01 PM



Charities React to the Charitable Reforms/Incentives
From BNA:

The big fear had been that all the incentives in H.R. 4 might disappear and there would only be reforms left, United Way Public Policy Director Patrick Lester told BNA July 31.

"We were in danger of seeing most of these charitable provisions be used to offset tax cuts for the business community, rather than coming back to charities in any way." Because the reforms raise revenue, they could have been used for other purposes, but Senate Finance Committee Chairman Charles Grassley (R-Iowa) insisted on pumping any gains back into the charitable incentives.

Posted by Jennifer Lowe, 09:37:48 AM

Tuesday, August 01, 2006

Bill With Charitable Provisions To Move To Floor Tomorrow
Majority Leader Bill Frist will file a motion to proceed on the House-passed pension reform bill (H.R. 4) tomorrow, Aug. 2.

As discussed in a previous blog entry, H.R. 4 contains charitable incentives and reforms. For a summary of those provisions, see the Council on Foundations analysis.

Posted by Jennifer Lowe, 11:02:42 AM

Thursday, June 29, 2006

NY Times Says Estate Tax Repeal Could Hurt Charities
From the New York Times:

If the estate tax bill approved last week by the House becomes law, it will benefit wealthy families and cost the government a lot of tax revenue. But there are likely to be other winners and losers as well. Charities may find it harder to get donations and some heirs may have to wait years or even decades longer to collect inheritances, while surviving wives or husbands receive larger inheritances.

Posted by Jennifer Lowe, 11:39:23 AM