Early Bird Registration Deadline Approaching
The Philanthropy Roundtable's 2012 Annual Meeting
The American Spirit of Giving
The Breakers, Palm Beach, Florida
Register by Friday, August 3 and save $250.
See details about the conference below.
The ACR blog (www.acreform.com/blog) highlights our thoughts on news of the day. For regular updates from our blog, follow us @acrefom on Twitter.
Here is a roundup of the ACR blog since the last newsletter edition:
Pease Limitation Explained: Video Analysis
In addition to the expiration of the Bush-era tax cuts at the end of 2012, a little-known tax provision that may impact charitable giving called the Pease limitation is scheduled to take effect if Congress does not act. Evan Liddiard, CPA, tax expert and consultant to ACR, explains “Pease” and why foundations and nonprofits should be paying attention.
Challenges to Nonprofit Tax Exemptions and Other Issues: Video Analysis
Just as policymakers in the United States are considering a reexamination of the nonprofit tax exemption and deductions of charitable gifts, those in the United Kingdom are doing the same. Check out what Pat Read, consultant and nonprofit expert, thinks about the U.K. proposal to curb charitable giving and implications for us in the U.S.
Will Philanthropy Play a Leading Role in a 4th Revolution in America?James Pierson, president of the William E. Simon Foundation, wrote a thought-provoking article about the future of America and how we could be on the cusp of a “fourth revolution.” We’re not talking about another war, but deliberate shifts in our approach to government.
Congress is just one week away from adjourning for five weeks of recess. It will return just after the political conventions conclude (Republican, August 27-30th, and the Democratic, September 4-6th). In the days leading up to recess we can expect spirited debate by both parties about the most effective way to avoid the year-end fiscal cliff, deep spending cuts and tax increases set to take effect on January 1, 2013. Towards this end…
- Senate Votes First
After a full day of political messaging on Wednesday (July 25th), the Senate voted on two plans to address the tax increases set to kick in on January 1st. The Democrat’s plan passed narrowly, 51-48, while the Republican plan was defeated 45-54. In general, the Democratic plan extends current tax rates to families earning less than $250,000, but allows rates for higher earners to expire. The defeated Republican plan would have extended current tax rates for all tax payers.
Wednesday’s Senate votes were more about politics than policy, allowing both Democrats and Republicans to express their positions on tax rates in advance of November elections.
- House of Representatives Is Next
Next week, the Members will debate the House Republican proposal which is identical to the Senate Republican plan; it will not consider the Senate-passed bill. This House measure is expected to pass along party lines.
Also on the agenda for debate by the full House is a bill that proposes an expedited process for upcoming tax reform in 2013. The current version of this measure states that by April 30, 2013, the House Ways and Means Committee chairman must introduce a bill meeting certain targets for individual tax reform, such as a 25% top rate. It also sets a specific timeline for votes on the legislation in both the House and Senate by limiting time for debate and restricting the number of amendments that can be offered. Although this bill is only expected to pass the House, passage would be significant since it would bind the House to act on a major rewrite of our tax laws for the first time since 1986.
- Former “Super Committee” Member Outlines Plan for Tax Reform and More
In a speech on Monday Senator Pat Toomey (R-PA), a first-term Senator who served on the Super Committee, outlined his plan for comprehensive tax and entitlement reform. The Senator proposes to lower all individual tax rates by 20% and decrease certain tax benefits such as itemized deductions (which includes the charitable deduction.) While Senator Toomey was not specific about which itemized deductions would be cut the most, he did say that those individuals earning the most would be targeted.
While we do not expect Senator Toomey’s plan to be adopted in whole, he does have influence within the Senate Republican caucus. Along with our colleagues from the Charitable Giving Coalition and Leadership 18 (an alliance of Chief Executive Officers leading some of the country’s largest charities, nonprofits, and faith-based organizations), we have asked for meetings with the Senator and his staff to discuss the impact cutting the charitable deduction would have on the sector and its beneficiaries.
The Battle Over Capping Tax Cuts
Remember Gilda Radner’s character Emily Litella on Saturday Night Live? She’d say things like, “What’s this about President Ford wanting to make Puerto Rico a steak? If you make Puerto Rico a steak, next thing they’ll want is a baked potato!” When interrupted to be told it was “state” not a “steak” that the President was considering, Radner would mutter, “never mind.”
As of this writing all of official Washington is wrapped up in a bitter debate over the Bush-era tax cuts and what to do when they expire...(keep reading)
Here are recent headlines you may find interesting:Tax Reform/Charitable Deduction
Fix the Debt Campaign - Former Clinton White House chief of staff Erskine Bowles and former Republican Senator Alan K. Simpson of Wyoming have a launched a $25 million campaign with business leaders, budget experts and former politicians to build public support for a plan to tackle the national debt by raising taxes and cutting retirement programs. Also see: Fix the Debt Campaign and Bowles and Simpson: Still pushing boulder up the Hill, CNN MoneyFederal
Congressional Hearing: During this week’s House Ways & Means Committee hearing, the second in a series on tax-exempt organizations, Members heard from the IRS on its challenges in determining the taxable income of nonprofit organizations and the burdensome nature of the revised Form 990. Also see: Hearing Advisory: Boustany Announces Hearing on Public Charity Organizational Issues, Unrelated Business Income Tax, and the Revised Form 990 and Witness List & Testimony
501(c)(4)s: In response to heightened public interest in the campaign-related activities of 501(c)(4) groups and requests for investigations, the IRS has signaled it will consider revising rules governing 501(c)(4) “social welfare” nonprofits. Also see: IRS Letter to Democracy 21 and IRS Sizes Up Political Groups’ Tax-exempt Status, Chicago Tribune.State/Local
New Hampshire: A recent investigation of executive compensation at New Hampshire’s nonprofit hospitals that finds CEO pay has increased by eighteen percent in recent years has prompted discussion across the state. Nonprofits defend the higher compensation noting that “sweeping demands” placed on charitable organizations justify the increases. Also see: Report: Executive Compensation at New Hampshire’s Non-Profit Hospitals and New Hampshire Public Radio Interview: Examining Executive Salaries at the State’s Nonprofit Hospitals (Audio).Transparency
Building upon a conversation and debate at an event co-hosted by The Philanthropy Roundtable and Aspen Institute in May, Nonprofit Quarterly’s Rick Cohen addresses transparency and challenges foundations to engage in more expansive and standardized disclosure of information about their organizations – in advance of mandated regulations.Comings & Goings (Nonprofit Leadership)
GuideStar: GuideStar USA, the nonprofit website that publishes data on charities, announced that Jacob Harold, a program officer at the William and Flora Hewlett Foundation, will assume the chief executive position.This Caught Our Eye…
Council on Foundations: Vikki Spruill, the new president and CEO of the Council, shares her vision for the membership organization: “to help society better understand philanthropy’s impact and contributions.”
Impact Investing: The Washington Post reports on foundations and nonprofit organizations employing new business models to build financial security and achieve their social missions. Critics raise concerns about the difficulties nonprofits face with such endeavors.
Disaster Funding: Using the recent devastating fires in Colorado as an example, Josie Burke of El Pomar Foundation discusses how foundations can build funding for natural disasters into their giving strategy.
Sunsetting: Atlantic Philanthropies, the 13-year-old foundation of Charles F. Feeney which plans to end grantmaking by 2016 and close its doors by 2020, has announced its final grantmaking priorities.
Connected Philanthropy: Author Matthew Bishop suggests that philanthropy will increasingly be driven by individuals leveraging their social networks and (social) media to inspire others to give as demonstrated by Warren Buffett inspiring his wealthy peers or millennials raising money for causes they support via online tools.
2012 Philanthropy Roundtable Annual Meeting
The American Spirit of Giving
The Breakers, Palm Beach, Florida
Register now for the conference. (Early bird registration rate ends August 3).
The 2012 Annual Meeting of The Philanthropy Roundtable will offer principled, practical lessons on how donors can make the greatest impact. Come and engage. Come and learn. Come and share. The Alliance for Charitable Reform will offer programming on public policy issues affecting the charitable sector. ACR sessions and speakers will be announced soon.
Keynote speakers include:
Nancy G. Brinker, founder and CEO, Susan G. Komen for the Cure
Arthur C. Brooks, president, American Enterprise Institute
Cesar Conde, president, Univision Networks
Mark Edwards, executive director, Opportunity Nation
Michael M. Kaiser, president, John F. Kennedy Center for the Performing Arts
Bernie Marcus, chairman, Marcus Foundation, and co-founder, Home Depot
Featured speakers include:
Steven Anderson, president, Donald W. Reynolds Foundation
Carol S. Dweck, Lewis and Virginia Eaton Professor of Psychology, Stanford University
Ingrid Johnson, chair, City of Newark Reentry Advisory Board
Gay Hart Gaines, trustee, Mount Vernon Ladies’ Association
Adam Gelb, director for Public Safety Performance Project, Pew Center on the States
Fred Krupp, president, Environmental Defense Fund
Dave Levin, co-founder, KIPP, and superintendent, KIPP New York
James Liske, CEO, Prison Justice Fellowship
William P. Mumma, president, Becket Fund for Religious Liberty
Tricia Raikes, founder, Raikes Foundation
Kenneth W. Starr, president, Baylor University
John Tomasi, founding director, Political Theory Project, Brown University
For more information: http://www.philanthropyroundtable.org/topic/annual_meeting/
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