March 8, 2024

What's Happening This Week...

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

Legislative Alert

Foundations on the Hill 2024 Roundup and Next Steps

Thank you to all who joined us in Washington, DC for #FOTH2024! We heard from a wide array of speakers about issues like the Supreme Court’s affirmative action decision and the importance of advocacy and policy engagement. Foundations from around the country met with their members of Congress to discuss key issues related to the nonprofit and philanthropic infrastructure.

Take action to keep building momentum for our sector’s policy priorities. Here are two ways you can urge members of Congress to prioritize philanthropy right now: 

1. Ask your members of Congress to co-sponsor the Workforce Development through Post-Graduation Scholarships Act. Individuals can take our action alert, and your organization can sign onto this letter showing support for this important legislation.
2. Ask your members of Congress to support the Charitable Act. With a tax bill in the works, now is the ideal time to let Congress know just how important the universal charitable deduction is to nonprofit organizations and our communities.  

What We're Tracking in DC

Treasury and the IRS Announce Hearing on Donor-Advised Funds

On May 6, the IRS will host a hearing on proposed donor-advised fund (DAF) regulations. Dozens of organizations, including the Council, submitted comments to Treasury and the IRS detailing concerns with the proposed regulations during the open comment period. This public hearing is an additional opportunity for organizations to voice concerns with the proposed rules and how the IRS can address them. Organizations can join the hearing in person in Washington, DC or call in. Is your foundation planning to speak at the hearing? Let us know by emailing govt@cof.org.

Treasury and the IRS Request Comments on Priority Guidance

Each year, Treasury and the IRS ask the public for recommendations for their annual priority guidance plan. Past Council letters have addressed questions our members have raised concerning DAFs, global philanthropy, foundations’ ability to grant post-graduation scholarships, and economic development as a charitable activity. Comments are due at the end of May. Let us know if you have suggestions for what we should include this year by emailing govt@cof.org. 

Federal Government Updates and Opportunities

• The U.S. Agency for International Development announced a new partnership with the Skoll Foundation aimed at advancing locally led development.
• The Economic Development Administration released an early analysis of the equity impacts of its new Good Jobs Challenge, an initiative that invested $500 million in workforce training partnerships. 

Happening in the States

Hot Legislative Trends in the States So Far This Year

With most state legislatures well into their stride for the year, several trends affecting the work of charitable nonprofits have emerged.

• Child Care: Legislation in Arizona, Delaware, and Nebraska proposes increasing government subsidies for families to pay for child care or limiting copays in certain programs. A comprehensive bill in Missouri would create three tax credits to help providers and employers, as well as promote charitable giving.
• Government Grants and Contracting Reform: Bills in California would extend the recently enacted Prompt Payment Act to all signed final agreements with charitable nonprofits and make other nonprofit-friendly changes to the government grants process.  Kentucky legislation seeks to help nonprofits identify government funding opportunities by establishing a database of all state grants. A measure in Vermont would, among other things, mandate prompt payment by the government, streamline the grant application and reporting processes, and promote adequate indirect cost rates.
• Sales Tax Exemptions: Maine’s Governor is calling on the Legislature to extend the current partial exemptions to all charitable nonprofits in the state.

American Rescue Plan Act Investments in Nonprofits

State, local, Tribal, and territorial governments have until December 31, 2024, to commit to how they will spend (obligate) their allocations of the $350 billion in State and Local Fiscal Recovery Funds enacted as part of the American Rescue Plan Act. Recent announcements include the reopening of applications for a North Carolina grant program to expend remaining funds, as well as a Wisconsin community’s plan to allocate additional funds for competitive grants to support early childhood development, child care and families, and other examples in Connecticut and Michigan.  

News & Resources

• Election year homework: Building the future all communities deserve, The Hill
• What’s happening in Haiti, and what’s the humanitarian backdrop?, The New Humanitarian
• Building Funder Capacity to Work with Communities: A Rural Environmental Justice Case Study, Aspen Institute 

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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