Friday, February 24, 2012
The latest newsletter is available below or with full articles online.
Washington Roundup
Both the House and Senate were out of session this week for President’s Day, and will return on Monday, February 27th.
Here is an update from Capitol Hill:
President’s Budget
As you know, the President released his FY2013 budget plan
on Monday, February 13th. His plan included a 28 percent limitation on itemized deductions, including the charitable deduction, for households earning more than $250,000 a year. This was identical to the proposal included in his last three budgets. President Obama also called for streamlining the private foundation excise tax to a flat 1.35 percent, as he did in his FY2012 budget. New this year, however, was a set of tax reform principles in the budget
that included the “Buffett Rule,” a 30 percent minimum tax for households earning more than $1 million a year, with a provision maintaining one tax incentive – a modified charitable giving incentive. In case you missed it, click here to read our position on the President’s budget.
Although details about the Buffet Rule were limited, the description is similar to a bill , S. 2059, (Paying a Fair Share Act) introduced by Senator Sheldon Whitehouse (D-RI) and nine other Democrats in the Senate. Congresswoman Tammy Baldwin (D-WI) introduced companion legislation, H.R. 3903, with 15 other Democrats in the House.
To shed more light on the President’s budget... (CONTINUE READING)
Payroll Tax Cut Extension
On Friday, February 17th the House and Senate quickly passed a bill to extend the current payroll tax rate reduction through 2012, and the President signed the bill earlier this week. The bill also extends federal unemployment benefits and delays reductions in certain Medicare reimbursements to doctors, while adding almost $100 billion to the deficit this year. The expiration of these tax provisions at the end of 2012, along with many other tax provisions, leaves Americans facing a large tax hike
on January 1, 2013 should Congress not act before the end of the year.
Tax Reform
On Wednesday, February 22nd, the Treasury Department released “The President’s Framework for Business Tax Reform.” This Framework made a clear and compelling case for business tax reform. President Obama called
for lowering the corporate tax rate to 28 percent for most companies. To help pay for the lower rate, he advocated removing many deductions and credits while also establishing a minimum tax on income earned overseas. In other words, broadening the base in exchange for a lower overall rate.
We do not expect the President or Congress to release a tax reform plan aimed at individuals this year. However, we expect the House and Senate to continue building a public record and developing data through hearings and roundtable discussions about options for both individual and business tax reform. As for the nonprofit sector, we can expect more hearings particularly in the House as Ways and Means members begin to study the sector. There are no firm details yet, but we will keep you posted.
Consider This
Are You Ready for "Taxmageddon?"
Back in February of 2010, the Washington area experienced what came to be known as “Snowmageddon.” In our suburban Maryland backyard, we measured a full 37 inches of snow!
But hang on to your hats. The events leading up to the end of this year could put “Snowmageddon” to shame. We are talking about “Taxmageddon.” That is the term Congressional staffers have devised to describe what we may be facing on the tax front come January 1, 2013.
(Continue reading)
Making Headlines
Here are a few recent news items you may find interesting:
Charitable Deduction
It’s been a busy two weeks on the charitable deduction with proposals emerging from the Administration that could impact
the charitable giving. On one hand the President’s FY 2013 budget included a 28 percent cap on deductions –including the charitable deduction. On the other, the President also laid out principles for tax reform that included a minimum tax of 30 percent on wealthy individuals but allows for only one deduction, the charitable deduction. For full digest of articles and opinion on this incentive for giving visit Charitable Deduction Central on ACR website.
Opinion:
|
Heather Higgins, president of the Randolph Foundation, highlights in Huffington Post the mixed signals on charity in the President’s budget noting that the limit on the charitable deduction and the Buffett Rule principle for tax reform will have a negative impact on charity and philanthropy.
|
The White House defends its plans arguing there will be little impact on giving and there are voices in the sector which agree.
States/Local
New York: The state Senate Investigations and Government Operations Committee elicited comments during a hearing on Governor Andrew Cuomo's executive order signed last month that mandates a cap on executive pay at state-funded nonprofit organizations. See also: Andrew Cuomo's order baffles nonprofits, Crain’s New York
Oklahoma: Governor Mary Fallin has proposed an income tax plan that would eliminate $888 million worth of deductions and exemptions —including for charitable giving— while simplifying returns and lowering the state’s maximum tax rate.
B-Corps: A Huffington Post op-ed examines the rise in popularity across a number of states of benefit corporations as an answer to growing interest in socially responsible business practices.
Comings & Goings (Nonprofit Leadership)
Admiral Michael Mullen, former chairman of the Joint Chiefs of Staff will co-chair a new Veterans Advisory Board of the Robin Hood Foundation, a poverty-fighting organization based in New York City, that will focus on veterans and their families.
This Caught Our Eye…
Nonprofit Research: Urban Institute researcher Joseph Rosenberg discusses the new Tax Policy and Charities project, which aims to provide information on how various tax policies affect charities, and sheds light on proposals that may affect charitable giving.
Wealth Gap: A wealth advisor opines on how private philanthropy can play a role in closing the wealth gap by encouraging and supporting social innovation to deliver new social interventions according.
Nonprofit Tax Exemptions: Issues raised by the Citizens United Supreme Court case continue to emerge as some members of Congress are requesting that the IRS look into the tax exempt status of certain groups. See also: Two justices suggest Citizens United ruling should be reconsidered in Montana case, Washington Post
Upcoming Event
Sessions & Speakers Announced
ACRSummit for Leaders
March 21, 2012
8:00 a.m. – 12:00 p.m.
Mayflower Renaissance Hotel
1127 Connecticut Avenue NW
Washington, D.C. 20036
Register Now: http://summitforleaders.eventbrite.com
The Alliance for Charitable Reform's Summit for Leaders offers a half-day of programming to provide a snapshot of the current political issues impacting philanthropy and nonprofits, and guidance on how to effectively advance your cause amid competing priorities and constant commotion. The Summit is an excellent opportunity for foundation executives, nonprofit leaders, and others interested in the intersection of public policy and philanthropy.
Sessions
-
Transparency: All, nothing, or something in between?
Debate about philanthropic transparency is frequently framed in terms of absolutes: Are you for it or against it? Should all organizations be held to the same standards? The reality, as we all know, is anything but black and white. This brief discussion will preview a soon-to-be-released publication from The Philanthropy Roundtable that explores the issue of transparency and its application to the sector. Speakers: Sue Santa, Senior Vice President for Public Policy, The Philanthropy Roundtable; and Suzanne Garment, Visiting Scholar, Center on Philanthropy, Indiana University
-
Inside Washington
With tax reform on the horizon, calls for increased deficit reduction and a presidential election, 2012 is shaping up to be a busy and important year for our sector. In this discussion, Congressional staff will provide an insider’s look at the legislative landscape on Capitol Hill for 2012 and what issues could impact the philanthropic community. Speakers: George A. Callas, Staff Director, Subcommittee on Select Revenue Measures, House Committee on Ways and Means; Karen McAfee, Staff Director, Oversight Subcommittee, House Committee on Ways and Means (invited)(invited); Katherine Monge, Tax Counsel, Senator Ben Cardin (D-MD);
Preston Rutledge, Tax & Benefits Counsel, Senate Finance Committee; and Steven Woolf, Senior Tax Counsel, Jewish Federations of North America (moderator - invited)
-
State - Issues to Watch
A lot of attention is focused on how Congress and the IRS are taking actions that could affect private foundations and charities. Less attention is given to the States. But governors, attorneys general and legislatures have power, through administrative actions and legislation, to impact the sector. And these actions can occur more quickly and more quietly than in Washington, D.C. Hear from a nonprofit expert about the most compelling issues being taken up by state policymakers. Speakers: Pat Read, Principal, Pat Read Consulting
-
Lobbying 2.0: Advanced advocacy strategies
Looking to sharpen your message and broaden your impact in Washington and at home? Washington experts will share top strategies for engaging with Congress, stakeholders and the public in order to meet your goals. From a former senior congressional aide to a communications executive and a seasoned DC lobbyist, panelists will provide an advanced course that moves beyond form letters and petitions. Speakers: Evan Liddiard, Former Senior Tax Policy Advisor, Senator Orrin Hatch (R-UT); Cleta Mitchell, Partner, Foley & Lardner; Aaron Sherinian, Vice President of Communications and Public Relations, United Nations Foundation; Sandra Swirski, Executive Director, Alliance for Charitable Reform; and Steve
Taylor, Senior Vice President and Counsel for Public Policy, United Way Worldwide (moderator)
Other Events on March 21:
-
Luncheon
12:00 - 1:15 p.m.
Luncheon co-hosted by ACR, Council on Foundations and the Forum of Regional Associations of Grantmakers with commentary and analysis on the Republican Primary and the General Election by Stuart Rothenberg Editor and Publisher, The Rothenberg Political Report and Columnist, Roll Call.
-
ACR Fly In/Speak Out (Lobby Day)
Wednesday Afternoon
Meetings with senior Congressional staff to discuss the importance of maintaining incentives for charitable giving such as the charitable deduction. Location: Capitol Hill. (See below for more information)
-
Reception
5:00 - 6:00 p.m.
Reception to acknowledge the work of a key Member of Congress who is championing issues important to private philanthropy. Location: The Monocle Restaurant
-------------------------------------------------------------------------------------
Register: http://summitforleaders.eventbrite.com/ or call 202-822-8333
-------------------------------------------------------------------------------------
Foundations on the Hill
The ACR Summit for Leaders is held in conjunction with Foundations on the Hill (FOTH), hosted by the Council on Foundations and the Forum of Regional Associations of Grantmakers. We encourage Summit attendees who are eligible to participate in FOTH to visit www.foundationsonthehill.org for more information. Attendees must register separately for Foundations on the Hill here.
For more information contact Patrice Lee at The Philanthropy Roundtable (plee@philanthropyroundtable.org or 202.822.8333).
|
Upcoming Event
|
ACR Fly In/Speak Out (Lobby Day) in Washington, D.C.
Mark your calendars for a Lobby Day with the Alliance for Charitable Reform the afternoon of Wednesday, March 21, 2012.
Why should you attend?
With President Obama once again expected to call for limiting the charitable deduction, and some Members of Congress continuing the hunt for revenue to help pay for other priorities, 2012 is shaping up to be another challenging year for the sector. Therefore, it is important that nonprofit leaders remind policymakers about what is at stake should policy changes drive less private giving.
What is Lobby Day?
In short, it’s a chance to meet with policymakers and their staff. Similar to our October event, this will provide an opportunity for you to connect with policymakers and explain the impact that a decline in private giving would have on your programs and the people you serve.
RSVP to Patrice Lee (plee@philanthropyroundtable.org or call 202-822-8333).
|
Unsubscribe
Not interested in this email? 
|
|
