Washington Snapshot - February 7, 2014
Just Announced - Washington Update Webinar on February 19
Get prepared for Philanthropy Week in Washington!
As Philanthropy Week quickly approaches, we are excited to offer the second in a series of webinars geared at getting you up-to-speed on the latest happenings in Washington! Council staff and our consulting team will give an update on what we anticipate will be happening in Washington as you arrive in town the first week of March. We’ll also review the messages that we find are resonating right now on Capitol Hill, so your meetings will have impact and influence. This webinar will be hosted on Wednesday, February 19th from 3-4pm EST and is open to all interested participants. Register now! A list of speakers and the dial-in information will be sent the week prior to the webinar.
For those who haven’t heard, Philanthropy Week, hosted by the Council on Foundations from March 3-7, will offer those participating in the annual Foundations on the Hill (FOTH) event a comprehensive and impactful Washington experience. It will add a unique element of education and relationship-building for leaders of both community and private foundations. FOTH, hosted by the Forum of Regional Associations of Grantmakers March 5th and 6th with strong and ongoing support from the Council, will still be the primary, Capitol Hill-focused event during which delegations from across the country visit with their Members of Congress. Philanthropy Week will also include the Alliance for Charitable Reform Summit for Leaders on March 5th, a half day informational seminar that has gained in popularity and prominence over the past several years.
Go to the Philanthropy Week website for registration information, and make sure to book your room at the Embassy Suites Washington D.C. – Convention Center when you register. Room rates for the event are $289 for single/double occupancy, $314 for triple occupancy, and $339 for quad occupancy. The hotel block with these rates closes next Friday, February 14th, so be sure to secure your room soon!
Tax Policy News
Baucus Confirmed as Ambassador to China
After over four decades on Capitol Hill, Senator Max Baucus (D-MT) is ending his illustrious Senate career to become the new U.S. Ambassador to China. Senator Baucus was confirmed as Ambassador by his Senate colleagues just yesterday.
As we’ve reported, it is widely anticipated that Senator Ron Wyden (D-OR)—who recently joined Senator John Thune (R-SD) and 31 other Senate colleagues in support of the full value of the charitable deduction—will replace Senator Baucus as the new Chairman of the Senate Finance Committee. Speaking with reporters yesterday, Senator Wyden expressed a willingness to work on tax extenders legislation, “If you don’t take steps to address them, it would be very damaging to some key parts of our economy, and I do feel that it’s important to make them a bridge to comprehensive tax reform.” We are pleased that Senator Wyden already has signaled his strong support for the sector, and we look forward to working with him as we continue our advocacy efforts on Capitol Hill.
Council President and CEO Vikki Spruill Congratulates Senator Baucus:
“On behalf of the Council on Foundations I would like to congratulate Senator Baucus on his confirmation as United States Ambassador to China, a position of considerable global importance. I know he will serve our nation with pride, as he has for so many years served the people of Montana in the U.S. Senate. The nation’s capital will no doubt miss his integrity and independent spirit.
"I am particularly grateful that the Senator understood the vital role of philanthropy in our nation, especially demonstrated during his tenure as chairman of the Senate Finance Committee.
"Through its work as Co-Chairs of the Global Philanthropy Working Group at the State Department, the Council has seen important developments in Chinese civil society, including a remarkable and dynamic expansion of philanthropy. We look forward to continuing collaboration with Ambassador Baucus as he seeks continued success in Beijing.”
Ways and Means hearing focuses on proposed 501(c)(4) rules
As we mentioned last week, the House Ways and Means Subcommittee on Oversight held a hearing with new IRS Commissioner John Koskinen on Wednesday that was focused on the IRS’s proposed rules on 501(c)(4) political activity. The hearing was called by Subcommittee Chair Charles W. Boustany, Jr. (R-LA- 3), who adamantly opposes the new rules. “The draft rules would upend regulations that have been in place since 1959. They would perversely incentivize political activity by 501(c)(3) charities,” Boustany said in his opening statement. House Ways and Means Committee Chair Dave Camp (R-MI-4) was also highly critical of IRS actions on 501(c)(4) organizations, and expressed his concern that these rules were intended to silence certain conservative groups and are
As we reported earlier this year, Chairman Dave Camp (R-MI) introduced legislation in January—the “Stop Targeting of Political Beliefs by the IRS Act of 2014 (H.R. 3865)—that would prohibit the IRS from issuing or finalizing the proposed 501(c)(4) regulations. The bill was largely a political statement by Camp and other Ways and Means Republicans opposed to the proposed rules.
Rep. Grayson introduces bills to extend the IRA rollover and food donation deductions
Representative Alan Grayson (D-FL-9) has introduced two bills that would benefit nonprofits and address two of the charitable “tax extenders” that expired at the end of 2013: H.R. 3944 would extend the IRA charitable rollover for one year, and H.R. 3949 would extend the deduction for food inventory donations for one year. While this IRA rollover bill does not go as far as other versions, such as Senator Chuck Schumer’s (D-NY) Public Good IRA Rollover Act that would expand the rollover and make it permanent law, we are encouraged that the Congressman has raised attention to this issue that is important to Council members and many other nonprofits. Both bills have been referred to the House Ways and Means Committee. We don’t anticipate that stand-alone bills on individual tax extenders will receive much traction at this point in the year. However, we are encouraged by Congressman Grayson’s support for these giving incentives, and for seeking to build momentum on the Hill on these and other “tax extenders.”
State Activity
State legislatures have been quite active in 2014 so far, with numerous states considering bills that would change how the state regulates nonprofits. We are keeping tabs on this activity, and here are just a few examples of what we’ve been seeing:
Oregon
Oregon House Bill 4081 would give the state Department of Justice the authority to order noncompliant nonprofits to file annual reports with the state. The bill also imposes a $2,000 penalty on nonprofits that willfully fail to file their annual reports, and is aimed at catching organizations that willfully skirt their filing obligations, rather than smaller organizations with limited resources that may miss a deadline from time to time. It has been endorsed by the Nonprofit Association of Oregon. The bill is now on the Oregon House floor for a vote.
Nevada
As of the beginning of this year, the state of Nevada is requiring nonprofits soliciting charitable donations in the state to register with the Nevada Secretary of State. Nevada joins most other states that have already adopted this registration requirement. Nevada’s registry information is posted on the Secretary of State website, and includes basic information about an organization in an attempt to give members of the public an opportunity to determine if an organization is legitimate when they are making decisions about where to donate.
Other News in Philanthropy
Gates Foundation tackles advocacy
POLITICO published a fascinating piece on the public policy focus of the Bill & Melinda Gates Foundation. The features the grants that the Foundation makes towards advancing policy goals in areas like education. While the foundation cannot lobby, it finds other legitimate ways to leverage its resources to elevate the issues the foundation cares about and ensure that these topics are being addressed in legislatures and administrative departments all around the country.
Scott Thomas, Dean of the Education School at Claremont Graduate University, says that the Gates Foundation has become extremely effective at impacting education policy in particular. “[Y]ou can leverage foundation resources to really affect federal and state policy — and the funding that comes along with that,” Thomas says.
Nonprofits oppose Combined Federal Campaign rules
The Washington Post reports that the federal Office of Personnel Management (OPM) is finalizing Combined Federal Campaign (CFC) rules that could impact how much money federal employees donate to nonprofits. The CFC is an annual program that allows federal employees to make donations to charity through their workplaces. The new rules would no longer allow cash donations and would reduce some of the control that local campaign coordinators had over donor outreach on the ground. Some nonprofits are concerned that CFC donations will already be lower this year because of unpaid furloughs and low morale experienced by many federal employees. These rules, they say, will reduce donations even further by eliminating the option for cash donations and decreasing donor awareness. Check out Independent Sector’s webpage on the CFC rule for more information!
Keep in Touch!
Please feel free to reach out to any of us on the public policy team with any comments or concerns, or to share an issue, article, event, or op-ed you’d like to see covered in a future Washington Snapshot.
