Washington Update
Finally completing a 2005 request by Senator Charles Grassley (R-IA), the Treasury Department released their study today on how nonprofit supporting organizations and donor advised funds distribute money to charities. The report found that these groups distributed approximately 9 to 12 percent of their assets in 2006, and recommended that there NOT be any federal requirement for annual giving for supporting organizations and donor advised funds, since their giving was high compared to private foundations.
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Further Reading
Current Issue
Friday, January 14, 2011
Welcome to 2011! We’re anticipating a busy year ahead and look forward to keeping you up to date on the issues that matter to our community.
The latest edition of the ACR newsletter is available below. Here are highlights:
Washington Roundup
- Ways and Means Committee Action
- Congressional Schedule
- Sen. Grassley Asks ECFA for Input
Consider This: Congress Kicks Off 2011
Click continue reading for the latest edition of the ACR newsletter.
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Senate Committee passes health care bill without cap on charitable tax deduction or exec compensation
Yesterday, in a 14-9 vote, the Senate Finance Committee pushed healthcare legislation on to the next phase of passage. ACR is pleased to report that none of the nonprofit related amendments we were monitoring made it into this final bill.
None of the amendments using the 35% limitation on itemized deductions were offered during the mark-up. However, one senator briefly mentioned the limitation and how it was necessary to restore fairness in the current system. The ACR team is working closely with the charitable deduction coalition and Sen. John Thune’s office to gather support and ensure that our message to oppose any attempts to limit the charitable deduction will be heard on Capitol Hill.
In addition, amendments from Sen. Charles Grassley clarifying IRS authority regarding governance questions on the Form 990 and eliminating the safe harbor for tax-exempts from the IRS when determining “excessive” executive compensation were not included in the bill. We anticipate that these proposals may resurface in the future. Sen. Grassley highlighted his concern about the profit-motive of nonprofits and his desire to hold tax exempt organizations more accountable in the executive compensation area.
For more information, check out The Chronicle of Philanthropy’s coverage:
