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Friday, October 19, 2012

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The latest edition of the ACR newsletter is available below and with full articles online at www.ACReform.com.
 

Save the Date

Charitable Giving Coalition’s “Protect Giving – DC Days”
December 4-5, 2012

(Scroll to the end for details)

 


ACR Blog Roundup

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The ACR blog (www.ACReform.com/blog) highlights our thoughts on news of the day. For regular blog updates, follow us @ACReform on Twitter.

Here is a roundup of the ACR blog since the last newsletter edition:

When the Bull Elephants Fight, the Grass Gets Trampled
At The Philanthropy Roundtable’s Annual 2012 Meeting, ACR hosted a panel discussion on the relationship between government and the charitable sector, and why now it is important to defend the charitable deduction. Panelists included Sandra Swirski, ACR’s executive director, Alex Reid, counsel at Morgan Lewis, and Cleta Mitchell, a partner at Foley and Lardner. After providing an overview of the political landscape heading into the fiscal cliff and the devastating effects it could have on the nonprofit sector they examined arguments in defense of the charitable deduction, the broader effects of the charitable deduction, and the power of private giving.

JUST IN FROM WASHINGTON… “Charities Worry Gifts to Shrink With Romney Limits.” (VIDEO)
In an interview on Bloomberg TV Steve Taylor, senior vice president and counsel for public policy for United Way Worldwide, discussed the charitable sectors’ worries concerning Governor Romney’s proposed cap on all deductions. Over the past several weeks and during both presidential debates, Romney has floated the idea of paying for lower tax rates by capping deduction, including the charitable deduction, for higher income earners at between $17,000 and $50,000.

 


Washington Roundup

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Second Debate

The second of three Presidential debates was held Tuesday night at Hofstra University in New York.  Viewers saw a far more aggressive President and an emboldened Republican nominee challenge each other in a town hall setting.  Several of the topics had not yet been broached in depth on the campaign trail, including immigration, pay equality for women and gun control.  The third and final debate will be held on Monday October 22nd, at Lynn University in Boca Raton, Florida.


Charitable Deduction: Hot Presidential Topic

During Tuesday night’s debate, Governor Romney again mentioned his plan to cap deductions and credits at a certain dollar amount to pay for a 20 percent tax cut.  The GOP candidate stated “In terms of bringing down deductions, one way of doing that would be say everybody gets — I’ll pick a number — $25,000 of deductions and credits, and you can decide which ones to use. Your home mortgage interest deduction, charity, child tax credit, and so forth, you can use those as part of filling that bucket, if you will, of deductions.”  As before, Governor Romney failed to outline any more details for this plan.

In light of specific details from the Romney campaign, the non-partisan Tax Policy Center (a joint venture between the Urban Institute and Brookings Institution) released a report analyzing the three dollar amounts that Governor Romney has mentioned for a cap: $17,000, $25,000 and $50,000. It estimated that the full repeal of all itemized deductions would raise ... (CONTINUED)


Consider This

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The Presidential Candidates Agree… Unfortunately, on Capping the Charitable Deduction

Washington is completely, utterly, totally consumed by the upcoming elections on November 6th.  The polls, the electoral college maps, the debates, the rallies, the round the clock news coverage.  Frankly, we’re exhausted.  It’s like living in dog years – every day feels like seven.

So let’s step away from politics and examine a little bit of policy that Governor Romney has been raising in his Presidential bid... (continue reading)


Making Headlines

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Tax Reform/Charitable Deduction

The charitable deduction (and other deductions) at risk of being capped is a hot topic in Washington, ignited by recent proposals from both Governor Romney. Also see: Mitt Romney on Charitable Deductions: A $25,000 Cap?, Huffington Post, and Charitable Deduction Under Fire, Nonprofit Law Prof Blog

Senator Marco Rubio (R-FL) came out in defense of maintaining the charitable deduction and several others. Others from the nonprofit sector continue to speak out as well.

In a letter to Senators Max Baucus (D-MT) and Orrin Hatch (R-UT) the Joint Committee on Taxation said an immediate repeal of some of the most popular tax benefits, including the charitable deduction, would pay for only a 4 percent cut in U.S. income tax rates. Also see: Repealing Deductions Pays for 4% Tax Cuts, Study Says, Bloomberg Businessweek


Federal

Fiscal cliff and beyond: The Washington Post provides a rundown of policy changes set to occur even if Congress is able to act to prevent the “fiscal cliff” and how they threaten to plunge the nation back into a recession.


States/Local

Payments in Lieu of Taxes (PILOTs) continue to gain steam, with particularly strong interest in Pennsylvania:
Philadelphia: A coalition of Philadelphia community and union groups wants Mayor Michael Nutter to challenge the tax exemptions of nonprofits in the city. Also see: Will Philadelphia Squeeze PILOTS out of More Nonprofits?, NewsWorks

Pittsburgh: As a concession for approval of the city’s 2013 budget Pittsburgh’s Mayor Luke Ravenstahl has promised a state oversight board that the city will develop a new formula for PILOTs by nonprofits. Also see: Pittsburgh Ordered to Renew Talks on PILOT Payments, Philanthropy News Digest

Scranton: The Scranton City Council and the Council’s solicitor are using various tactics to extract PILOTs from nonprofits including asking the city’s zoning board for notice when nonprofit property owners apply zoning variances so the solicitor can oppose it. Also see: Tax-Exempt Scranton Properties May be Singled out for Scrutiny, Nonprofit Quarterly

Portland, OR: The Editorial Board of the Portland Press Herald opines on why city officials are right to consider a formal program that encourages nonprofits to help “ease the burden for other local property owners” through PILOTs.



This Caught Our Eye…

Government & Philanthropy: Philanthropy Daily columnist Jacqueline Pfeffer Merrill explains why a recent op-ed mischaracterizes the relationship between philanthropy and government and their respective powers to meet societal needs.

The Philanthropy 400: For the third straight year the top 400 U.S. charities ranked annually by the Chronicle of Philanthropy achieved median gains in giving. Also see: How the Top 100 Have Changed in 2 Decades, Chronicle of Philanthropy

PILOTs: A new report from the Lincoln Institute of Land Policy has confirmed that demanding payments in lieu of taxes (PILOTs) from nonprofits fails to provide the budget windfalls municipalities seek, accounting for an average of only 0.13 percent of the general revenue where they were collected. Report: Payments in Lieu of Taxes by Nonprofits: Which Nonprofits Make PILOTs and Which Localities Receive Them


Recent Event

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2012 Philanthropy Roundtable Annual Meeting Recap

Last week (October 11-12), The Philanthropy Roundtable hosted its 2012 Annual Meeting in Palm Beach, Florida. Themed “The American Spirit of Giving” this year’s conference celebrated the unique and generous spirit of Americans to solve problems for their communities, without waiting for government to act. Read president Adam Meyerson’s welcome remarks for a reminder of just how much Americans give away and why that generosity needs to be protected and encouraged. The Roundtable also officially launched the Philanthropy Hall of Fame, an online catalogue of great donors (all posthumous) who changed the nation and the world through their giving.

The Alliance for Charitable Reform offered several sessions on public policy issues affecting the charitable sector. Beginning with “Taxmageddon: Renegotiating the Relationship Between Government and the Charitable Sector?” tax and policy experts examined the nation’s fiscal problems including looming mandatory spending cuts and tax increases, and long-awaited reform of the tax code.  Against this backdrop they discussed implications for a possible reshaping of the role of government and its relationship with the charitable sector. For more on this session read our blog update.

Charitable Deduction Should Be a Constitutional Right, Says Lawyer
The Chronicle of Philanthropy reported on a bold idea proposed during this session from noted nonprofit legal expert Cleta Mitchell, partner with Foley and Lardner, to propose a constitutional amendment protecting the charitable deduction. Click here to read the full story.


Picking up from where “Taxmageddon” left off, a panel of policy experts examined the latest policy developments and how philanthropy can prepare for the next big policy challenges in “The Shifting Policy Landscape: What’s Ahead for Donors and Nonprofits?” Finally, the Roundtable hosted “Transparency, Accountability, and Effectiveness:  What are the Connections?” as part of an on-going series of discussions that aim to address nuances of transparency this issue that are often overlooked with a particular focus on the role of government in private grantmaking.


Upcoming Event

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Join the Effort to Protect America’s Strong Tradition of Giving!

Charitable Giving Coalition’s “Protect Giving – DC Days”
December 4-5, 2012 ~ Washington, D.C.

Please join us for the Charitable Giving Coalition’s inaugural Capitol Hill fly-in event – “Protect Giving – DC Days”! This is a great chance to meet with policymakers and their staff to explain the impact that a cut/cap/limit on the charitable deduction would have on your program and the people you serve.

With the post-election “lame duck” session of Congress shaping up to be the time when policymakers will make final decisions on how to address the end of the year fiscal issues, slashing or limiting itemized deductions, including the charitable deduction, remains a popular proposal for raising federal money.

This is not news for many of you. But now it's crunch time. The stakes have never been higher. It is critical that policymakers hear from us NOW before final decisions are made and unintended consequences take root. That’s why the Charitable Giving Coalition is encouraging you to participate in our Protect Giving – DC Days. Our goal is to have 200 participants attend, representing a broad swath of the nonprofit sector including private and community foundations, their grantees, and independent charities. There is no cost to attend the event, but we are asking participants to be responsible for their own travel and hotel, if needed.

Below is a brief schedule of events:
Tuesday, December 4:
6:00 pm – 8:00 pm
Working dinner with guest speaker from Capitol Hill
Offices of Venable, LLP
575 7th Street, NW, Rooftop
Washington, D.C. 20004

Wednesday, December 5:
8:30 am – 9:30 am
Continental breakfast, including Hill meeting training, talking points and other materials
Senate Office Building, Dirksen Room 106, Capitol Hill

9:30 am – 4:00 pm
Meetings with Congressional members and staff on Capitol Hill
Personalized schedules will be available closer to the event

For additional information about the event and to RSVP, contact William@acreform.com.  Please be sure to RSVP by Friday, November 16, 2012.

 


If you experience any technical difficulties with links please email plee@philanthropyroundtable.org.

Contact ACR at Info@acreform.com


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