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 Update from the Senate: Last week, there were some rumblings that negotiations were underway in the Senate Finance Committee to expand the IRA Charitable Rollover provision to include donations made to donor-advised funds and supporting organizations. Currently, the IRA Charitable Rollover provision allows individuals to withdraw up to $100,000 tax-free from an IRA account to give to charity through the end of the year.
We expect negotiations to continue, however it is unlikely the provision will be ultimately expanded. Rather, it is more likely the provision will only be extended – in its current form – beyond the end of this year due to revenue constraints. This extension is expected to be included in the Tax Extenders package, along with an extension of business tax incentives also due to expire at the end of this year.
 Update from the House of Representatives: We understand that the House Financial Services Committee may hold a hearing on the 13th or 14th of November to discuss pension fund investments and hedge fund issues. While there are currently no details on witnesses or even an official title for the hearing, it is possible that the UBIT blocker issue (click here for background information) will be discussed at this hearing.
As always, we will continue to keep you abreast of any updates especially as we receive more details on the agenda, witnesses and potential scope of this hearing.
 Update from the IRS: According to an article printed in the Chronicle of Philanthropy, the Internal Revenue Service (IRS) continues to focus on governance and management practices of nonprofit organizations.
In fact, a top IRS official, in response to criticisms that the IRS has overstepped its charge to revamp the form 990, argues “…we think that governance is a very big part of accountability…There is some argument that this is only the purview of the states. The IRS believes it is your purview but it is also of interest to us.” While the governance issue was raised in the context of Form 990 filers, we expect a similar focus by the IRS on private foundations as well.
The IRS released a new draft version of the Form 990 in June (click here to view the draft) and hopes to complete this process by the end of the year.
 News Update: As many of you may have seen, there was an article printed in the New York Times entitled, “Big Gifts, Tax Breaks and A Debate on Charity” (click here to view article). The article, written by Stephanie Strom, discussed the role that philanthropy plays in our society and, in some ways, questions whether the charitable deduction is serving its intended purpose.
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