Washington Snapshot

Washington Snapshot: Democrats Announce Build Back Better Framework

Friday, October 29, 2021 - 12:00 pm
Stephanie Powers

What You Need to Know About Public Policy This Week...

News IconNews from the Council

Our  virtual 2021 Public Policy Summit is just days away! At this year’s Policy Summit on November 4, our speakers—including Anne Price, President of the Insight Center for Community Economic Development; Rep. Kevin Brady (R-TX), Ranking Member of the House Ways and Means Committee; Kimberlyn Leary, Ph.D., Senior Equity Fellow at the White House Office of Management and Budget; and many more—will explore:

  • The cross-sections of wealth inequality, racial equity, philanthropy, and public policy
  • Major legislative issues affecting the philanthropic sector, including the ACE Act
  • The Biden Administration’s racial equity executive order
  • The sector’s advocacy journey, including advocacy training for foundation staff
  • Opportunities for philanthropic partnerships with federal agencies and the White House

Registration is free for Council members and costs $199 for nonmembers. View the full schedule and register today!

Congress IconDemocrats Announce Build Back Better Framework

The White House and congressional Democrats continued negotiations on budget reconciliation and the bipartisan infrastructure deal this week. On Thursday, the White House released the Build Back Better Framework detailing a series of proposals it hopes Congress will pass in the coming weeks, including universal pre-K, clean energy investments, and extensions of both the expanded Child Tax Credit and Earned Income Tax Credit. Also on Thursday, the House Rules Committee released the text of the Build Back Better Act (H.R. 5376), which includes many of the White House’s priorities.

Democrats have proposed a series of revenue raisers to pay for the package, including a multimillionaire surtax detailed in the White House framework, as well as several changes to the corporate taxation system. At this point, it is unclear which, if any, of these provisions will make it into the final package. While these details are still in flux, Council staff continue to monitor developments for any provisions affecting the philanthropic sector.

Before leaving Thursday, both chambers agreed to extend funding for surface transportation until December 3, 2021, the same day that funding for the federal government expires.

Executive & Regulatory News IconIRS Sets Standards on LLCs Seeking Exempt Status

The IRS released new guidance on the standards a limited liability company (LLC) must satisfy to receive tax-exempt 501(c)(3) status. This notice also solicits public comments on these standards and the ways LLCs operate to determine whether or not the IRS should release additional guidance. This notice does not affect LLCs currently classified as tax-exempt under 501(c)(3). Read a summary.

Executive & Regulatory News IconFederal Reserve Board Webcast Conference on Topics of Diversity and Inclusion

The Federal Reserve Board will host a series of diversity and inclusion conferences in November on the experiences that underrepresented groups have as they participate in the economy, the economics profession, central banking, and finance. The conference on November 8 will focus on how gender influences economic and financial outcomes over an individual's lifetime. Featured on this agenda is Anne Price, President of the Insight Center, who is also the keynote speaker at the Council’s annual Public Policy Summit on November 4. 

The second conference on November 9, hosted in partnership with the Bank of Canada, the Bank of England, and the European Central Bank, will focus on research about diversity and inclusion in economics, finance, and central banking. The conferences will be webcast here

Executive & Regulatory News IconChild Tax Credit Sign-Up Deadline Approaches in November

The American Rescue Plan expanded the Child Tax Credit for 2021 to help families with children that are experiencing economic hardship. The 2021 credit provides $3,600 for each child under age 6, $3,000 for children 6-16, and makes 17-year-olds eligible for the $3,000 credit. To get money to families sooner, the IRS is sending out half of the 2021 Child Tax Credit this year in monthly payments. Eligible families received a payment of up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 to 17. Funders should share the GetCTC.org, the simplified filing tool, with grantees that are positioned to help families navigate the sign-up process. The deadline is November 15. Find out more at ChildTaxCredit.gov.  Since the first payments were sent in July, tens of billions of dollars have been received by families, including more than 60 million children.

State Policy IconHappening in the States

Exclusive from our colleagues at the National Council of Nonprofits.

National Council of Nonprofits logo

2021 Session Highlight: Fundraising Platform Regulations

Fundraising platforms operating in California, like PayPal and Facebook, will be required to register, file, and report to the Attorney General’s Registry of Charitable Trusts under a newly enacted law. Among other things, third party “charitable fundraising platforms” that assist charitable nonprofits with fundraising will be required to provide increased disclosures, verify good standing of recipient organizations with the state, maintain separate accounts for funds, and ensure prompt transfer of donations and grants. The legislation took several forms over the past few years and targeted what was perceived as a gap in state solicitation laws that allowed platforms to collect donations in the name of a charitable nonprofit, but then not forward those funds to the intended recipient organization. “This legislation impacts every single person who clicks on that ‘donate now’ button and every single nonprofit that receives funding this way,” commented Jan Masaoka, CEO of CalNonprofits, which pushed for various provisions in the legislation. “It may be low-profile but it’s most certainly high-impact and meaningful” by requiring that fundraising platforms disclose all processing fees up upfront and, in most cases, receive consent by the recipient organization before soliciting funds. The law goes into effect Jan. 1, 2023, with rulemaking beginning in 2022.



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