February 9, 2024

What's Happening This Week...

• Happening at the Council
• What We're Tracking in DC
• Federal Government Engagement Opportunities
• Happening in the States
• News, Resources, and Events

Happening at the Council

Applications Open for the HUD Secretary’s Award for Public-Philanthropic Partnerships

Each year, the Council partners with the Department of Housing and Urban Development to present the HUD Secretary’s Award. Award recipients are grantmakers who have partnered with government at all levels on initiatives aimed at community development, disaster resilience, and more.

Last year, we recognized the Greater Milwaukee Foundation, which worked with the City of Milwaukee and other philanthropic and governmental organizations to support the Community Development Alliance. Aimed at advancing racial equity by creating new pathways to home ownership for people of color, the Community Development Alliance funded the construction of 150 homes and created a fund that will acquire 100 more homes each year.  

The award is open to all grantmakers. Council members and National Standards-accredited community foundations receive bonus points on their applications. Contact hudaward@cof.org with questions.

Foundations on the Hill – February 25-28 in Washington, DC

FOTH2024 will feature several in-depth discussions, including a conversation led by sector experts as they discuss the role of philanthropy in catalyzing a just and equitable society that encourages participation in the democratic process, protects each citizen’s right to be counted, protects the right to vote, and provides fair representation without restriction and interference.  

Throughout FOTH2024, guest speakers will explore ways the broader sector can work to protect democracy, provide examples of current work, and examine the emergence of cross-sector partnerships in this common pursuit. Register and view additional information about the agenda. 

What We're Tracking in DC

Last Chance to Submit Donor Advised Fund Comments

As you know by now, Treasury and the IRS announced proposed regulations on donor advised funds in November 2023. Comments on these proposed regulations are due next Thursday, February 15. We will include a link to our comments in the next edition of Snapshot, and we encourage you to share your comments as well.

End Tax Breaks for Dark Money Act Introduced

Sen. Sheldon Whitehouse (D-RI) and Rep. Judy Chu (D-CA) introduced the End Tax Breaks for Dark Money Act (S.3743/H.R.7244) this week. The bill would impose a capital gains tax on donations of appreciated property to section 501(c)(4), section 501(c)(5), and section 501(c)(6) organizations. The introduction of this bill follows an uptick in congressional interest in nonprofit political activity, in particular so-called “dark money” donations to 501(c)(4) organizations.

Ways and Means Committee Seeks Information about Nonprofits’ Support for Terrorism

Last week, a bipartisan group representing many members of the Ways and Means Committee sent letters to Treasury Secretary Janet Yellen, IRS Commissioner Daniel Werfel, and FBI Director Christopher Wray asking for information about their work to identify charities providing financial and material support to terrorist organizations. These letters are a continuation of the Committee’s work investigating nonprofit support of terrorist organizations, including their approval of H.R.6408 last year. H.R.6408 would strip nonprofit organizations suspected of supporting terrorist groups of their tax-exempt status. We continue to monitor this issue as the conversation evolves. 

Federal Government Engagement Opportunities

• The Federal Emergency Management Agency announced funding opportunities for Hazard Mitigation Assistance programs. Nearly $2 billion is available for flood mitigation and resilient infrastructure programs. Apply before February 29.
• The White House and Department of Education announced the Biden Administration’s Improving Student Achievement Agenda, an initiative aimed at accelerating academic performance. They partnered with several nonprofit and philanthropic organizations that also announced commitments to support academic achievement, including the Charles Stewart Mott Foundation and the Wallace Foundation.
• The United States Agency for International Development announced a partnership with the Conrad N. Hilton Foundation aimed at advancing locally led development.
• The Department of Commerce launched the U.S. AI Safety Institute Consortium, a group of AI creators, researchers, civil society organizations, and other stakeholders who will work toward the development of safe and trustworthy artificial intelligence.  

Happening in the States

Diversity, Equity, and Inclusion in Employment Policies

Legislators in multiple states are seeking to curb diversity, equity, and inclusion (DEI) policies and programs in employment policies. An Arizona bill would, among other things, prohibit state and local governments from entering into or renewing contracts with businesses or nonprofits that participate in DEI programs, and defund programs that promote or adopt any theory of unconscious or implicit bias. Florida lawmakers are considering legislation to make it an unlawful employment practice for a nonprofit organization or an employer receiving state funding to require any training, instruction, or other activity on sexual orientation, gender identity, or gender expression. A Utah bill seeks to prohibit all employers from applying or promoting unconscious bias or critical race theory as a condition of employment. Taking a different approach, a newly introduced bill in Idaho would protect gender identity and sexual orientation under the Idaho Human Rights Act.

State Data Privacy Legislation Moving in the States

Concerns over the privacy of personal data collected by for-profit businesses and the lack of federal standards continue to generate legislative proposals in the states. Laws typically mandate data privacy policies, regulate use of data, and provide rights to individuals to protect their data. While nonprofits have largely been exempted from legislation and laws, state lawmakers are now applying the same requirements to them as for-profits. Examples in Maine, New Jersey, and Vermont indicate the direction of this trend.

Upcoming Webinar: Nonprofits and Elections 2024: Why and How You Should Engage (and stay nonpartisan)

Wednesday, Feb. 21, 2024, 3:00 pm - 4:15 pm Eastern

This upcoming nationwide webinar presents national experts explaining how charitable nonprofits can engage in the 2024 elections in legal and nonpartisan ways and – more importantly – why it’s to their missions’ advantage to get involved. 

News & Resources

• Protecting the right to give according to our values, Candid
• Investing in Systems Change Capacity, Stanford Social Innovation Review
• 11 Trends in Philanthropy for 2024, Dorothy A. Johnson Center for Philanthropy
• Access Remaining COVID-Relief Funds Before It Is Too Late (Webinar Recording), National Council of Nonprofits 

Keep in Touch!

Please feel free to reach out to any of us on the Government Relations Team with comments or concerns, or to share an issue, article, event, or op-ed you would like to see covered in a future Washington Snapshot.

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