Fighting at the State Level

ACR continues to identify and respond to challenges to the charitable community in the states as well, particularly those originating from interest groups and activist organizations.  For example, last year the California Legislature considered AB 624, a bill that would have significantly increased onerous reporting requirements for foundations and their grantees.  The legislation was promoted by Greenlining Institute, an aggressive activist organization.

We believe the impetus for comprehensive reporting was merely a veil for the true goal - influencing and ultimately directing foundations to fund causes preferred by Greenlining itself.  Again, ACR activated many in the charitable community to add their voices in opposition to this legislation.  While the legislation ultimately failed, Greenlining has expanded its focus to other states and has recently opened an office in Washington, D.C.

California AB 624

In 2008, the California legislature began formal consideration of legislation (California AB 624). Under the guise of transparency and disclosure, this legislation would have, we believe, channeled foundation grantmaking to a limited, statutorily-prescribed group of charities. This legislation would have created winners and clear losers in the charitable community.

The legislation, which was never enacted into law, served as a direct threat to the philanthropic freedom of foundations and the charities they support. Now, even after a few of California’s leading foundations made unprecedented commitments of tens of millions of dollars, it remains unclear whether members of the California legislature will try to advance similar legislation in 2009.

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Further Reading

• A press release by the Foundation Coalition on the AB 624 deal

• The full story on AB 624 being pulled from consideration.

Background Material on AB 624

Further Reading

• Legislative text of AB 624
• Most recent changes to AB 624
• Remarks of the many organizations opposed to AB 624
• ACR talking points: AB 624 Will Drive Charitable Dollars Out of California
• ACR talking points: How AB 624 affects California's 102,000 charities
• Analysis by the Statisical Assesment Service of Greenlining's study on foundations
• Rebuttal of Greenlining's arguments
• Comments from the Greenlining Institute in support of AB 624

Press Coverage of AB 624

The following are articles related to AB 624.

Further Reading

• "The Latest Charity Shakedown" WSJ.com - November 5, 2008
• "No Good Deed Goes Unpunished?" San Francisco Chronicle - March 25, 2008
• “Editorial: Sneaking Big Brother into California” – examiner.com, Feb. 26, 2008
• “No Good Deed: A bad bill makes its way through the California legislature” – The Weekly Standard, Feb. 25, 2008, by Matthew Continetti
• “Relief bill asks too much” – The Press Enterprise, Feb. 24, 2008
• “The Color of Charity” – The Wall Street Journal, Feb. 4, 2008
• “Asking Too Much” – Los Angeles Times, Jan. 31, 2008, by David A. Lehrer and Joe R. Hicks
• “California Assembly Votes to Make Foundations Disclose Key Information on Diversity” Chronicle of Philanthropy, Jan. 30, 2008, by Suzanne Perry