Friday, November 18, 2011

The latest newsletter is available below or with full articles online.

Washington Roundup

 Here is an update from Capitol Hill:

Super Committee

The Joint Select Committee on Deficit Reduction (the “Super Committee”) is rapidly approaching its November 23rd deadline for finding $1.2 trillion in deficit reduction, and as of today (November 18th), an agreement has not been reached. As you may have seen in our alert last week, both sides have released plans calling for spending cuts to government programs, but tax increases and entitlement reforms remain the biggest obstacle to a deal.

The latest reports indicate the Committee will fail to produce a grand deal before the deadline. Committee members remain optimistic, as Representative Chris Van Hollen (D-MD) said Thursday night that the Committee will “work all weekend to try to bridge [our] differences.” Most people in Washington believe  the Committee will indeed produce an agreement on spending cuts that amount to far less than the required $1.2 trillion of deficit reduction. In an effort to mitigate the effects of this lackluster plan, it is likely the Super Committee will include a clause that directs the Senate Finance Committee and House Ways and Means Committee to undertake tax reform in 2012.

While the current Democrat and Republican proposals mention repealing certain tax incentives, it is still unclear which specific provisions were targeted and whether they will be included in a final deal. We have heard, however, that the charitable deduction has not been singled out as specific provisions have not been named. As news continues to break over the weekend and next week, we will send updates with the latest information.
 

Congressional Activity

Last week, in a warming display of bipartisanship, the Senate unanimously passed H.R. 674, the 3% Withholding Repeal and Job Creation Act , which the House passed 405-16 on October 27th.  This bill repeals a 3% withholding requirement on payments due to vendors who are providing services to federal, state, and local governmental entities. Most importantly, the Senate added a tax credit to companies that hire out of work veterans and an increase in the value of an existing credit for companies that hire veterans with service-related disabilities. These tax credits were part of the President’s American Jobs Act and represent the first successful effort to pass parts of that bill piecemeal. The House approved the bill with the added Veterans hiring incentives on Wednesday night (November 16th), by a vote of 422-0, and it is now on the President’s desk for his signature... ( CONTINUE READING)


Proposed House and Senate Schedules

If you are looking to set meetings with your Representatives in Washington or in your district, please take note of the proposed House and Senate schedules for 2012.  Unlike past Congresses, the House and Senate schedules are very different, which means both chambers will rarely be in session at the same time.

Consider This

Bang or Whimper: Super Committee Predictions
With just days to go before their November 23rd deadline, the $1.2 trillion question in Washington is whither the Super Committee?  Will they go out with a bang?  A whimper?  Or something in between?

These tea leaves are awfully tough to read.  That being said, we’ve long believed that the Super Committee will get to something in between.  By that we mean ... (Continue reading)

Making Headlines

Here are a few recent news items you may find interesting:

Federal

Charitable Deduction: This week Congressional Republicans submitted recommendations to the Super Committee for cutting the deficit that include limits to deductions for high-income earners. The charitable deduction could be among those deductions. For additional reporting on developments visit Charitable Deduction Central on our website.

In related news: Brent Christopher, president and CEO of the Communities Foundation of Texas, explains in the Dallas Morning News why now is not the time for Congress to experiment with the charitable deduction. (subscription)

Columnist Scott Walter opines on recent comments by Emmett Carson, CEO and president of the Silicon Valley Community Foundation, chiding the nonprofit sector for its silence against the president's proposal to limit the charitable deduction.

New Legislation: Representatives Aaron Schock (R-IL) and Jared Polis (D-CO) have introduced a bill, Philanthropic Facilitation Act of 2011 (HR 3420), that simplifies the process for using program-related investments (PRIs) to further charitable activities. Read press statements from the Council on Foundations and Americans for Community Development.

White House nonprofit leadership program: This week, the White House convened a meeting with over 200 leaders of charities to plan a new effort (the Initiative for Nonprofit Talent and Leadership) that aims to boost the quality and diversity of nonprofit leaders. Related news: White House and Nonprofits Start Leadership Effort, Chronicle of Philanthropy
 

States
Michigan: Charities are predicting a drop in giving next year when the state tax credit for charitable donations expires on December 31st as part of the governor’s tax package. They are reminding donors of the expiring credit and asking them to increase their year-end giving. Relatedly: State tax credit for charitable giving expires at year's end...
 

Comings & Goings (Nonprofit Leadership)
Tides Fellowship: Sonal Shah, former deputy assistant to the President and director of the first White House Office of Social Innovation and Civic Participation, joins other philanthropic leaders including Gara LaMarche, former president and chief executive officer of The Atlantic Philanthropies, as a Tides Fellow where she will work on impact investing and public-private partnerships.

This Caught Our Eye…
Can-Do Philanthropy: Philanthropic advisor Paul Penley provides highlights from the Philanthropy Roundtable’s annual meeting in Alliance Magazine by including the education revolution innovator Sal Khan is leading with the Khan Academy and Tom Tierney’s comments challenging the popular notion that low overhead costs signal better organizations.

Advocacy: Robert Egger, founder and president of the DC Central Kitchen, has launched CForward, a movement that harnesses the voting power of the tens of millions of nonprofit workers and volunteers to endorse political candidates with solid plans for strengthening charities in their communities.

Nonprofit groups in the early primary state of New Hampshire are trailing Republican candidates to challenge their proposed policies and educate them about issues related to charitable giving and the nonprofit sector.

Increasing Giving: A new report by Indiana University scholars offer over thirty suggestions on how to move the giving needle in the U.S. from 2% of average household income. Download the full report here.

Community Foundations: An op-ed by Jennifer Leondard, president and executive director of Rochester Area Community Foundation, looks at the benefits of community foundations and private philanthropy in the Rochester community as well as "community capital" foundations create to combat the needs in any area. In related News: Recognition Given to Community Foundations, Ithaca Journal.

New Books:  A review of Philanthropy in America: A History by American history scholar Olivier Zunz on the development of the distinctive style of American philanthropy since the Civil War.

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