News Archive

(3-2-10) The Senate is expected to vote on legislation later this week, which would retroactively extend the IRA Charitable Rollover through December 31, 2010. The House passed similar legislation in December.

(3-1-10) The Senate is expected to vote on "tax extender" legislation this week. The basis of the Senate bill will be H.R. 4213, which the House passed in December and contains a one year extension of the IRA Charitable Rollover.

FEBRUARY 2010

(2-19-10) PPP is partnering with the Association for Advanced Life Underwriting (AALU) to help charitable planners and insurance professionals work together more productively. The first step in the partnership is a free webinar for both groups on Thursday, February 25, at 4:15 p.m. Eastern Time. The goal of the seminar is to help insurance professionals understand the nonprofit perspective on insurance gifts, and to help charitable planners understand how life insurance works in a charitable context. Click here for more information and to register.

(2-18-10) The Partnership for Philanthropic Planning ILLOWA has released the findings of their 2009 Planned Giving Survey. The annual survey seeks to demonstrate the importance of planned giving and to aid local nonprofit organizations in evaluating their success.

(2-12-10) Senate Majority Leader Harry Reid has declined to include a package of "tax extenders", including a one-year retroactive extension of the IRA Charitable Rollover, in the Senate job creation bill that is currently under consideration. Majority Leader Reid has indicated, however, that he hopes to address tax extenders in subsequent legislation. The IRA Charitable Rollover extension had been included in a draft job creation bill released yesterday by Senate Finance Committee Chairman Max Baucus and Ranking Member Charles Grassley.

(2-5-10) The Partnership for Philanthropic Planning has joined with over 20 national organizations to urge President Obama to reconsider his budget proposal to limit the value of itemized deductions for charitable contributions. In a letter sent to the President this week the groups stated, "As charities struggle to meet increased demands for their services and raise additional funds, we need to encourage all individuals, regardless of income and wealth, to be more charitable. Limiting the value of the charitable deduction does the exact opposite and would fundamentally alter the tradition of charitable giving that has made America one of the most generous nations in the world."

(2-5-10) Senate leaders are currently drafting a major "job creation" bill that could potentially include an one-year extension of the IRA Charitable Rollover provision that expired on December 31st. A vote could take place on the Senate floor as early as next week.

(2-3-10) The Partnership for Philanthropic Planning is continuing to speak out in opposition to President Obama’s fiscal year 2011 budget provision that would reduce the value of tax deductions for charitable donations made by families earning more than $250,000 a year. The Partnership remains opposed to this proposal and continues to work with key partners on and off Capitol Hill to promote tax policy that provides strong charitable giving incentives.

(2-2-10) PPP invites experienced and innovative planners from all sectors of the philanthropic planning community to propose sessions for the 2010 National Conference on Philanthropic Planning. The Call for Presentations system is now open. Proposals must be submitted by March 15. To see a checklist of information required to submit a proposal, click here. To access the Call for Presentations, click here.

(2-1-10) Tanya Howe Johnson, President and CEO of the Partnership for Philanthropic Planning, gave the luncheon keynote address at the LEAVE A LEGACY® 10th year Celebration hosted by the Planned Giving Council of Northeast Indiana. In addition to Ms. Johnson’s remarks, Fort Wayne Mayor Tom Henry presented a proclamation in recognition of the community-wide LEAVE A LEGACY effort, and many founding contributors were recognized.

(2-1-10) Paul Schervish and John Havens Researchers at Boston College's Center on Wealth and Philanthropy have developed the a model designed to estimate future charitable giving by households on a quarterly basis. Schervish and Havens describe the model and the results of the first trial in the January/February issue of Advancing Philanthropy, the journal of the Association of Fundraising Professionals.

(2-1-10) President Obama transmitted his fiscal year 2011 budget to Congress. The document once again includes a provision that would reduce the value of tax deductions for charitable donations made by families earning more than $250,000 a year. The Partnership remains opposed to this proposal and continues to work with key partners on and off Capitol Hill to promote tax policy that provides strong charitable giving incentives.

JANUARY 2010

(1-28-10) Upon release of the annual survey on college endowments from the National Association of College and University Business Officers, Senator Chuck Grassley (R-IA), ranking member of the Senate Finance Committee, suggested the possibility of a minimum pay-out requirement for endowments, donor-advised funds, and certain supporting organizations. "The thinking is that since these organizations are allowed to accumulate money tax-free for their charitable purpose, they should have to spend at least a small amount fulfilling that purpose," Senator Grassley said.

(1-26-10) The PPP Virtual Seminar Series continues on Wednesday, March 17, with “Bequest Boot Camp—Ten Exercises to Strengthen Your Bequest Program” presented by Karen Gallardo, senior director of gift planning and major gifts for the AARP Foundation. The program provides 1.5 hours of CFRE credit. Virtual seminars bring the best sessions from the National Conference on Philanthropic Planning and other great national presenters to your desktop. For more information about the programs in the series, click here.

(1-22-10) Both the House and Senate have now approved H.R. 4462, which would allow taxpayers to make cash contributions to Haiti relief programs until March 1, 2010 and claim those contributions on their 2009 income tax return. The legislation also specifies that contributions made via text message can be deducted and filers would need to show a telephone bill to prove the donation.

(1-22-10) Senate Finance Committee Chairman Max Baucus (D-MT) said he expects to draft estate tax legislation that will reimpose the estate tax retroactively to the start of 2010 but that timing remains uncertain. According to pres reports, the timing of action on estate tax legislation might be part of the strategy Democrats use to bridge the gap between a simple extension of the 2009 estate tax levels that President Obama favors and the more aggressive exemption level and tax rates being sought by many Republicans and some moderate Democrats.

(1-21-10) The House approved H.R. 4462, which would allow taxpayers to make cash contributions to Haiti relief programs until March 1, 2010 and claim those contributions on their 2009 income tax return. The legislation also specifies that contributions made via text message can be deducted and filers would need to show a telephone bill to prove the donation. Following the House vote, Senate Finance Committee Chairman Max Baucus (D-MT) and ranking member Charles Grassley (R-IA) introduced companion legislation (S. 2936) and called for passage as soon as possible.

(1-20-10) Tanya Howe Johnson, President and CEO of the Partnership for Philanthropic Planning, is featured in a recent whitepaper entitled, During Tough Times, Role of Planned Giving Gains Prominence. Published by Lois L. Lindauer Searches, the paper also features input from gift planners at Arizona State University, Children’s Healthcare of Atlanta, and M.D. Anderson Cancer Center, among others.

(1-20-10) Senator Charles Schumer (D-NY), a member of the Senate Finance Committee, and Kirsten Gillibrand (D-NY) introduced S. 2937, which would suspend charitable giving limitations for relief directed to Haiti in 2010. The legislation would temporarily waive the normal rules that limit charitable deductions to 50 percent of individual adjusted gross income and 10 percent of corporate income. Congress waived both rules for relief targeted to the Gulf Coast following Hurricane Katrina.

(1-19-10) The Partnership for Philanthropic Planning and our members share in compassion and concern for the people and devastation in Haiti. Many charitable organizations represented by PPP members are actively responding to this tragedy. For more information on the needs and how you can help, visit USAID. President Obama has signed into law legislation that will allow taxpayers to make cash contributions to Haiti relief programs until March 1, 2010 and claim those contributions on their 2009 income tax return.

(1-19-10) Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking Member Chuck Grassley (R-IA), along with House Ways and Means Committee Chairman Charles Rangel (D-NY) and Ranking Member Dave Camp (R-MI), announced their intention to introduce legislation that would allow taxpayers to make cash contributions to Haiti relief programs until March 1, 2010 and claim those contributions on their 2009 income tax return. The proposal is similar to legislation passed unanimously in 2005 following the Indian Ocean tsunami disaster and could be voted on as early as this week .

In addition, Senator Charles Schumer (D-NY), a member of the Senate Finance Committee, and Kirsten Gillibrand (D-NY) have announced their intention to introduce legislation suspending charitable giving limitations for relief directed to Haiti in 2010. This legislation would temporarily waive the normal rules that limit charitable deductions to 50 percent of individual adjusted gross income and 10 percent of corporate income. Congress waived both rules for relief targeted to the Gulf Coast following Hurricane Katrina.

(1-15-10) Sens. Charles Schumer (D-NY), a member of the Senate Finance Committee, and Kirsten Gillibrand (D-NY) announced their intention to introduce legislation, which would suspend charitable giving limitations for relief directed to Haiti in 2010. Under current law, taxpayers can only deduct a maximum of half their incomes in a given year and corporate deductions are limited to 10 percent of incomes. The proposed legislation would temporarily waive these limits for Haiti relief. Congress waived both rules for relief targeted to the Gulf Coast following Hurricane Katrina.

(1-08-10) The Senate adjourned for 2009 without extending a number of tax provisions that expired on December 31st, including the IRA Charitable Rollover. The House approved a one year extension of the Rollover in December. Both Democratic and Republican leaders have indicated they will try to retroactively extend the provision within the first three months of 2010, although there continues to be significant disagreement between the Senate and House over how to offset the costs of any tax “extender” provisions. PPP continues to urge lawmakers to retroactively extend the IRA Charitable Rollover as soon as possible.

(1-06-10) Tanya Howe Johnson, President and CEO of the Partnership for Philanthropic Planning, participated in the bi-annual Key Philanthropic Organizations Committee (KPOC) meeting December 10, 2009, in Washington, D.C. KPOC, appointed by the American Society of Association Executives, brings together a diversity of the nation’s top philanthropic leaders for in-depth discussions on some of the most pressing issues facing the nonprofit sector including the economic outlook for nonprofit operations and fundraising, the use of social media by philanthropic organizations, nonprofit priorities for the 2010 legislative agenda, and nonprofit partnerships and collaborations.

(1-06-10) The NY Times reports that President Obama's new budget proposal could include a charitable deduction limit of 28 percent for taxpayers with income above $250,000. In February, Obama must submit his budget for the fiscal year that starts Oct. 1.

(1-06-10) Congress adjourned for 2009 without extending the estate tax. It is possible lawmakers will vote to reinstate the 2009 estate tax rules and make them retroactive to January 1, 2010. Republican lawmakers may also try to push for a tax rate lower than the 2009 level and insist that it last for at least two years.

(1-06-10) The IRA Charitable Rollover. Both Democratic and Republican leaders have indicated they will try to retroactively extend the provision within the first three months of 2010, although there continues to be significant disagreement between the Senate and House over how to offset the costs of any tax “extender” provisions. PPP continues to urge lawmakers to retroactively extend the IRA Charitable Rollover as soon as possible. and estate tax, which means both tax provisions now disappear until lawmakers take further action in 2010.

(1-04-10) The Senate adjourned for 2009 without extending a number of tax provisions that expired on December 31st, including the IRA Charitable Rollover. Senators Baucus and Grassley did indicate, however, that they plan to move legislation "early next year" that retroactively extends these provisions. The House approved a one-year extension of the Rollover in December.

(1-04-10) Despite a number of attempts to pass consensus legislation dealing with the estate tax, lawmakers in the Senate and House failed to reach final agreement on the issue. The estate tax ended on December 31st. Democratic leaders have said they plan to retroactively adjust the tax early in 2010, but many Republicans have vowed to fight such a move.

DECEMBER 2009

(12-22-09) According to Senate Finance Committee Chairman Max Baucus and Ranking Member Charles Grassley, the Senate will adjourn for the year without extending a number of tax provisions set to expire on December 31st, including the IRA Charitable Rollover. Senators Baucus and Grassley did indicate, however, that they plan to move legislation "early next year" that retroactively extends these provisions. The House approved a one-year extension of the Rollover earlier this month.

(12-21-09) Despite a number of attempts over the past several weeks to pass consensus legislation dealing with the estate tax, lawmakers in the Senate and House have failed to reach final agreement on the issue. Since the Senate is currently consumed with healthcare reform and House lawmakers have left Washington for the Christmas holiday, it is likely the estate tax will sunset on December 31st. Democratic leaders have said they plan to retroactively adjust the tax early next year, but many Republicans have vowed to fight such a move.

(12-18-09) The PPP Virtual Seminar Series begins on Wednesday, January 20, with “Recession-Proof Philanthropy,” presented by Neal Myerberg. Virtual seminars bring the best sessions from the National Conference on Philanthropic Planning and other great national presenters to your desktop. For more information about the programs in the series, click here.

(12-11-09) The House approved the Wall Street Reform and Consumer Protection Act of 2009 (H.R. 4173), which among many other things, would create a new federal agency to deal with consumer financial protection issues. Earlier versions of the legislation provided this new agency with expansive authority over the work of fundraisers and charitable gift planners. PPP and several other national charities, however, were successful in pushing for an exemption for activities relating to charitable giving. This exemption was added to the legislation by an amendment offered on the House floor. The Senate is working on companion legislation to H.R. 4173, and PPP will remain actively involved in the process.

(12-09-09) ACTION ALERT - The House approved the Tax Extenders Act of 2009 (H.R. 4213), which includes a one-year extension of the IRA Charitable Rollover. The legislation now heads to the Senate where a vote has not yet been scheduled. Please call both your Senators this week and urge them to extend the IRA Charitable Rollover before the end of the year. Click here for more information.

(12-09-09) The CEOs of Guidestar and Charity Navigator have agreed that effectiveness in achieving mission—rather than overhead ratios or CEO salaries—is the best way for donors to identify charities that deserve their support. Click here to read their comments, and find links to new online services that assess organizational effectiveness.

(12-09-09) The IRS issued news release IR-2009-114, which reminds individuals and businesses making contributions to charity of several important tax law provisions that have taken effect in recent years. Among the provisions described by IRS in the release are special charitable contributions for certain individual retirement account owners, rules for clothing and household items, and guidelines for monetary donations.

(12-03-09) The House may vote next week to extend the IRA Charitable Rollover for one year, through the end of 2010. Unless Congress acts soon, the IRA Charitable Rollover, which allows individuals age 70½ and older to make outright charitable donations of up to $100,000 from IRAs and Roth IRAs without having to count the distributions as taxable income, will expire on December 31st. The House is also expected to vote on several other "extender" provisions that will benefit charitable giving, including provisions related to: contributions of capital gain real property for conservation purposes; enhanced charitable deduction for contributions of food, book inventories to public schools, and corporate contributions of computer equipment for educational purposes; special tax treatment of certain payments to controlling exempt organizations; and special rules for S corporations making charitable contributions of property.

(12-03-09) The House approved the Permanent Estate Tax Relief for Families, Farmers and Small Businesses Act of 2009 (H.R. 4154), which would extend indefinitely current estate tax levels - a top rate of 45 percent and an exemption of $3.5 million for individuals and $7 million for couples. Under H.R. 4154, the exemptions would not be indexed for inflation. The legislation now moves to the Senate where its fate remains unclear.

(12-02-09) The House will vote on legislation (HR 3126) next week that would create a new federal agency to deal with consumer financial protection issues. Unfortunately, the text of this legislation is worded so broadly that, if enacted into law, it would significantly impact the work of fundraisers and charitable gift planners. The Partnership is currently working with a coalition of national organizations on a legislative fix that would exempt from the legislation all activities relating to charitable contributions. We are hopeful this language will be added to the "manager's amendment" prior to any House votes.

(12-03-09) ACTION ALERT - The IRA Charitable Rollover is set to expire on December 31st, and the Partnership for Philanthropic Planning is asking that you take action now! Please call your Representative and both your Senators and urge them to extend the IRA Charitable Rollover before the end of the year. Click here for more information.

NOVEMBER 2009

(11-30-09) Ninety percent of attendees at the 2009 National Conference on Philanthropic Planning agreed that it was a valuable professional development experience that gave them information and tools to do their jobs better. In 2010, you can get that value—and more—at the 2008 price. Conference registration fees will go up next year, but you can lock in the 2008 rate if you register before December 18. Click here for more information.

(11-30-09) A vote on estate tax reform could come in the House of Representatives this week. Congressional leaders have scheduled a vote on the Permanent Estate Tax Relief for Families, Farmers and Small Businesses Act of 2009 (H.R. 4154), which would extend indefinitely the current estate tax levels—a top rate of 45 percent and an exemption of $3.5 million for individuals and $7 million for couples. The legislation, introduced by Representative Earl Pomeroy, would not index the exemption levels for inflation. This permanent approach to estate tax reform conflicts with earlier plans that would have extended current levels for either one or two years, thereby punting the decision on a long-term restructuring of the estate tax until 2010 or later.

(11-23-09) According to Congressional staff, the House of Representatives will vote as early as next week to extend the IRA Charitable Rollover for one year, through the end of 2010. Unless Congress acts soon, the IRA Charitable Rollover, which allows individuals age 70½ and older to make outright charitable donations of up to $100,000 from IRAs and Roth IRAs without having to count the distributions as taxable income, will expire on December 31st. The House legislation is also expected to include several other "extender" provisions that will benefit charitable giving, including provisions related to: contributions of capital gain real property for conservation purposes; enhanced charitable deduction for contributions of food, book inventories to public schools, and corporate contributions of computer equipment for educational purposes; special tax treatment of certain payments to controlling exempt organizations; and special rules for S corporations making charitable contributions of property.

(11-23-09) The House is expected to consider legislation the week of Nov. 30 that would make permanent the current estate tax rate and exemption levels. Ways and Means Committee Democrats have indicated that going with a long-term bill is the "prevailing view." But other lawmakers said they believe a decision was made and announced November 18 to move forward on a one-year extension of the 2009 estate tax rate and exemption levels. The one-year plan was called into question after House Majority Leader Steny Hoyer (D-MD.) told the Ways and Means Committee he preferred moving a long-term plan. The current estate tax rate is 45 percent with an exemption level of $3.5 million for individuals and $7 million for couples. Unless something is done, in 2010 the rate and exemption level will fall to zero and then jump up to 55 percent and $1 million, respectively, in 2011.

(11-19-09) The Congressional Research Service (CRS) has released a report entitled "An Overview of the Nonprofit and Charitable Sector" that, among other things, attempts to discuss the "costs" of charitable giving. Unfortunately, the report makes several erroneous conclusions, including "if tax subsidies do not induce additional charitable giving, the subsidy provides a windfall to the taxpayer (without providing additional funding to charitable organizations)" and "recent evidence on price elasticities suggests that charitable contribution deductions are not very efficient, in that the government spends more than a dollar to induce a dollar of contributions." While this report in no way reflects the position or will of Congress, PPP remains extremely concerned about the conclusions it draws, and will work with our charitable sector partners to prepare any necessary response.

(11-19-09) House Ways and Means Democrats agreed November 18 to move forward on a one-year extension of the current estate tax rate and exemption level rather than the multiyear plan envisioned in recent weeks. Select Revenue Measures Subcommittee Chairman Richard Neal (D-Mass.) said the legislation also would tie a permanent estate tax fix to underlying tax reform in 2010. The current estate tax rate is 45 percent with an exemption level of $3.5 million for individuals and $7 million for couples. Unless something is done, in 2010 the rate and exemption level will fall to zero and then jump up to 55 percent and $1 million, respectively, in 2011.

(11-10-09) Charitable giving to nonprofit health-care institutions is ailing, with giving up an anemic 2.6 percent in 2008 according to a new study by the Association for Healthcare Philanthropy.. Americans donated $8.6 billion for health care in 2008, up slightly from $8.3 billion in 2007, but only about half the growth rate seen from 2006 to 2007. Total pledges for 2008 fell 6.2 percent in 2008 and planned gifts secured were down almost 13 percent.

(11-10-09) Congress is currently considering legislation that would create a new federal agency to deal with consumer financial protection issues. The text of this legislation is worded so broadly that the new agency would have a significant impact on the work of fundraisers and charitable gift planners. The legislation in the House (HR 3126) has now passed through committee. The Partnership has been working with a coalition of national organizations on amendment language exempting from the legislation all activities relating to charitable contributions. Our goal is that this language will be added to the legislation on the House floor. In the Senate, lawmakers on the Banking Committee will reportedly review draft legislation in the next few weeks.

(11-10-09) The House passed healthcare reform legislation on 11-07-09. Attention now turns to the Senate. Although several Senate Finance Committee members have proposed paying for healthcare reform by capping the value of the charitable deduction, those amendments did not make it into the final bill approved by the Finance Committee. The Partnership continues working to ensure a cap is not added to healthcare legislation on the Senate floor. The Partnership has supported the efforts of over 30 Senators who recently sent a letter which urges their colleagues to protect the full value of the charitable deduction.

(11-06-09) The IRS has begun a new audit program that will try to stop very wealthy individuals from using “complex financial arrangements”—including private foundations—to avoid paying taxes. According to IRS Commissioner Douglas H. Shulman examples of these complex arrangements could include “trusts, real-estate investments, royalty and licensing agreements, revenue-based or equity-sharing arrangements, private foundations, privately held companies.” Initially, the IRS program will examine individuals with tens of millions of dollars of assets or income, the commissioner said.

(11-05-09) The Partnership for Philanthropic Planning has joined a coalition lead by the American Institute of Certified Public Accountants in opposition to the patenting of tax planning strategies. In an October 21, 2009 letter coalition members argue that U.S. tax laws and tax planning strategies should be equally applied and available to all taxpayers. The 77 tax strategy patents that have been approved and the 129 that are pending apply to a broad range of areas including charitable contributions, estate and gift taxes, pension plans and deferred compensation.

OCTOBER 2009

(10-30-09) New in the Resource Center! Model documents for gift agreements and gift acceptance policy and procedures. Click here to access files that you can adapt for your own organization.

(10-21-09) The Partnership for Philanthropic Planning (PPP) has become a member of the Synergy Summit, an umbrella organization whose delegates represent the leadership of the major legal, accounting, and financial service organizations in the country. In addition to PPP, Synergy Summit’s member organizations include:

Together, these groups represent more than 200,000 lawyers, accountants, financial advisors, philanthropic gift planners, and insurance and other professionals. PPP President and CEO Tanya Howe Johnson said the invitation to membership in the Synergy Summit is a direct result of the spirit of collaboration fostered by the brand and mission of the Partnership for Philanthropic Planning. “The Synergy Summit provides a forum for the leaders of these constituent groups to build productive relationships and collaborations that better serve their organization’s members and the public. By working collaboratively with these professional organizations PPP hopes to help create models of philanthropic planning partnership that help donors make the most meaningful charitable gifts.”

information about the Synergy Summit and its constituent organizations is available on its web site at www.SynergyPro.org.

The Partnership for Philanthropic Planning (formerly the National Committee on Planned Giving) is a 501(c)(3) public charity whose mission is to help people and organizations create charitable giving experiences that are the most meaningful in achieving both charitable mission and the philanthropic, financial, family and personal goals of the donor.

The Partnership achieves its mission through research, education, advocacy, community dialogue and the setting of standards and best practices in philanthropic planning. The Partnership strives to engage all constituents in the charitable gift planning process: nonprofit planned giving and major gifts professionals, nonprofit managers and trustees, financial and estate planners, trust managers and administrators.

The Partnership for Philanthropic Planning is supported by 123 local councils and over 8,000 individual and council members, as well as charities, associations, and business organizations that support the mission of charitable giving made most meaningful.

For more information, contact: Tami Tarpley Director of Strategic Initiatives (317) 269-6274 ext. 21 ttarpley@pppnet.org.

(10-01-09) Call to Action The Senate Finance Committee is voting on numerous amendments to the America's Healthy Future Act of 2009 that would severely limit the value of the charitable deduction, and the Partnership for Philanthropic Planning is asking you to call your Senator and share your opinions on this subject. Click here to access talking points in support of the charitable deduction, and to read the Partnership’s letter to Senate Finance Committee Chairman Max Baucus and a recent Chronicle of Philanthropy article on proposed amendments that may affect the deduction.

SEPTEMBER 2009

(9-22-09) In response to the many healthcare reform amendments filed that use a 35 percent limitation on the itemized deduction as a revenue off-set, the Partnership and its coalition partners have sent a letter to Senate Finance Committee Chairman Max Baucus (D-MT) to urge Congress to protect the value of the charitable deduction. Joining the Partnership in signing onto this letter are American Society of Association Executives, Association for Healthcare Philanthropy, Association of Fundraising Professionals, Council for Advancement and Support of Education, Council on Foundations, among others.

(9-22-09) Sen. Charles Grassley (R-IA) filed several amendments relating to tax-exempt organizations in anticipation of the Senate Finance Committee's health care reform markup. One, a revenue raiser, would remove the IRS safe harbor that provides exempt organizations, such as nonprofit hospitals, a "rebuttable presumption of reasonableness" in determining the compensation of officers and directors.

(9-22-09) In conjunction with the National Conference on Philanthropic Planning, the Partnership is hosting “Lobby Days” from October 12-16, 2009 to provide members with an opportunity to meet directly with their Senators and Representatives and speak out on major charitable giving legislation pending before Congress. To participate in these Lobby Days, members should download the information packet, which includes an introductory letter, step-by-step instructions on how to schedule meetings with Senators and Representatives, suggested meeting topics and talking points, lobbying do’s and don’ts, and post-meeting “report cards.”

(9-21-09) The Senate Finance Committee has released a list of over 500 amendments filed for the health care mark-up scheduled to begin 9-22-09. Over 20 of the amendments use a 35 percent limitation on the itemized deduction as a revenue off-set. This would essentially freeze the current law deduction level at 35 percent although the rate is scheduled to increase to 39.6 percent in 2011. Many more amendments do not include any revenue offsets at this point and some type of limitation on itemized deductions, including the charitable deduction, could be used. At this point it is unclear where Senate leadership stands on these amendments, and PPP and our coalition partners are monitoring all developments and reaching out to key Members and staffers.

(9-21-09)The early bird registration rate has been extended for the National Conference on Philanthropic Planning to September 29. Visit Facebook for a preview of program highlights and faculty for the National Conference on Philanthropic Planning. Click here, or use the Facebook icon on the conference landing page. If you don’t have your own Facebook account, just click on the “Sign Up” button. Facebook “fans” of the page can use the comment and discussion features to: recommend speakers you’ve heard in the past (even if you don’t plan to attend the conference)/li> seek or make recommendations for free time activities in the DC area post topics you’d like to discuss in affinity group sessions.

(9-11-09) The Internal Revenue Service has issued a number of guide sheets telling IRS determination specialists how to process certain requests from exempt organizations. Donor-advised funds and supporting organizations are among the issues addressed.

(9-10-09) Sen. John Thune (R-SD) has written an article entitled "Charitable Giving Should Not Be Punished" in the September 2009 issue of the Journal of the Direct Marketing Association (DMA) Nonprofit Federation. The Partnership has joined with DMA Nonprofit Federation and many national charities to fight any proposed reductions to the charitable giving tax deduction.

(9-09-09) Senate Finance Committee Chairman Max Baucus (D-MT) released America’s Healthy Future Act of 2009, his "Chairman's Mark" of comprehensive healthcare reform legislation. The Partnership is pleased to report that the mark does not include any cap on the charitable deduction. It does, however, include new requirements for section 501(c)(3) hospitals related to: community health needs assessments, financial assistance policies, limitation on charges, collection processes, and reporting and disclosure requirements. The mark is scheduled for committee action on September 22, 2009.

(9-09-09) Senate Finance Committee Chairman Max Baucus (D-MT) has released his healthcare financing proposal, which does not include a cap on the charitable deduction. The proposal does contain revenue provisions that would establish new requirements applicable to nonprofit hospitals, including "a periodic community needs assessment." The proposal is not draft legislation but seems to reflect a consensus among Senate Finance Members.

(9-03-09) Congress is likely this year to pass a one-year extension of the 2009 estate tax. According to Cathy Koch, chief tax counsel to the Senate Finance Committee, dealing with the scheduled expiration of the estate tax at the end of this year is on the "must-do" list. Several other expiring provisions need to be addressed soon as well, including a patch for the alternative minimum tax. President Obama and congressional Democrats have proposed making the 2009 estate and gift taxes permanent.

(9-03-09) The IRS has released an online mini-course, Can I Deduct My Charitable Contributions? complete with cartoon characters and a charitable contribution coach.

(9-03-09) The IRS has issued statistics derived from 2006 information returns for tax exempt entities. Some highlights: Over 92% of all Forms 990 were filed by organizations with assets under $10 million, but these reported only about 47.6% of total revenue. Over 71% of total revenue was reported by organizations with assets over $50 million, filing only about 2.5% of all returns and reporting average revenue of $16.2 million each. The average revenue for all tax exempts was about $575,000. Across the board, about 67.2% of revenue was from program services; while expenses averaged about 89.7%. The excess of revenue over expenses was net positive for all groupings of tax exempts but one: those with assets under $100,000 lost an average of a little over $18,000 each.

(9-01-09) The Canadian Association of Gift Planners reports that the Muttart Foundation has issued a report on Canadians’ familiarity and trust in charities. Among the report’s findings:

A majority of Canadians (77%) trust charities, with 27 percent trusting them a lot.
The most commonly cited reason for not having more trust in charities is uncertainty about where the money is really going (30%).
Trust in leaders of charities is similar to the level of trust in charities, with 78 percent of Canadians saying they trust leaders of charities and 25 percent saying they trust them a lot. Only nurses and medical doctors are more trusted than the leaders of charities.

AUGUST 2009

(8-31-09) October 20-26, 2008 has been named National Estate Planning Awareness Week. The National Association of Estate Planners & Councils and The NAEPC Foundation are encouraging estate planning councils to work in partnership with local planned giving councils and other professional organizations to plan and conduct activities to promote estate planning.

(8-27-09) The early bird registration rate has been extended for the National Conference on Philanthropic Planning to September 29. The conference will be held October 14-17, 2009 in National Harbor, Maryland (Metro Washington D.C.) at the Gaylord National Resort & Convention Center. The National Conference on Philanthropic Planning is for and about all of the constituencies that work together to make charitable giving most meaningful. Speakers, topics, and education formats are designed to engage all partners in the philanthropic planning process.

(8-25-09) The IRS has released Ten Tips for Taxpayers Making Charitable Contributions. Included is guidance on gifts of cash and property, deductibility limits, appraisals, forms and documentation.

(8-11-09) The Congressional Budget Office (CBO) has issued an important report that includes consideration of an above-the-line deduction for charitable giving, which is a proposal that the Partnership has actively promoted. In addition to the above-the-line deduction (labeled "Option 12"), the report to Congress also includes over 60 additional options for altering federal spending and revenue. Two of these options (numbers 10 and 11 on pages 193-196 of the report) related to charitable giving represent significant departures from current law. Option 10 would curtail the charitable giving deduction by only allowing contributions in excess of two percent of a taxpayer's adjusted gross income and option 11 would limit deductions for charitable gifts of appreciated assets to the gifts' tax basis. The Partnership opposes these options and any proposal that would reduce the value of charitable deductions. Inclusion of these charitable giving proposals in the CBO report does not obligate Congress to consider them. The options "are intended to reflect a range of possibilities rather than to provide a ranking or a comprehensive list."

(8-11-09) The IRS has released Announcement 2009-62 revising procedures that a Section 509(a)(3) supporting organization should use to ask for a change to its public charity classification. Organizations that wish to request a change in their classification should file a written request meeting certain criteria for a determination as to public charity status. Several provisions of the Pension Protection Act of 2006 adversely affected SOs by, for example, making them ineligible to receive charitable IRA rollovers and treating distributions to them from private foundations as taxable expenditures. As a result, a number of SOs have undergone structural changes and have applied for reclassification under Sections 509(a)(1) and 170(b)(1)(A)(vi) or under Section 509(a)(2) as publicly supported charities.

(8-10-09) On August 4 the IRS released FAQs for filing Schedule R of the redesigned Form 990 for 2008. The FAQs explain what constitutes related and unrelated relationships for purposes of the reporting requirements, and what kinds of transactions between related organizations are required to be reported. The questions and answers address not only Schedule R, but also deal with compensation arrangements, governance, and revenue. IRS has said Schedule R was added to capture "the increasingly complex organizational structures of tax-exempt organizations and improve transparency on those structures."

(8-4-09) The Center on Philanthropy at Indiana University has released its latest Philanthropic Giving Index (PGI). The Index, which is similar to a Consumer Confidence Index for charitable giving, shows that the fundraising climate for U.S. charities continued to decline in the first half of 2009, to its lowest level since the Center began the study in 1998. Fundraisers’ expectations for the coming six months are slightly more optimistic, but remain below the historical average for the study. The PGI survey also asks which fundraising techniques are most successful; survey participants currently perceive major gifts, direct mail and planned giving to have the highest levels of success. With the exception of Internet and email fundraising and direct mail, fundraisers are reporting that their success with most techniques (major gifts, planned giving, special events, foundations, telephone, and corporate gifts) is at or near its lowest levels since the study began. “There is no question that some organizations are really suffering, but nonprofits are resilient,” said Timothy L. Seiler, director of public service and The Fund Raising School at the Center. “Fundraisers are still working hard and donors are still giving, albeit perhaps at lower rates and a slower pace.” To read more about the Philanthropic Giving Index, click here.

(8-4-09) Last week the House recessed through Labor Day, and the Senate is expected to follow suit in a few days. Despite this summer break, key lawmakers and Congressional staff continue to cobble together healthcare reform legislation, including options on how to offset the cost of a major overhaul of the nation’s healthcare system. Congressional leaders have set a new deadline of September 15th for floor action on these bills. The Partnership is pleased to report that the House bill (H.R. 3200) does not include President Obama’s original proposal to limit the value of itemized deductions for charitable contributions.

JULY 2009

(7-02-09) The federal estate tax is scheduled for repeal in 2010, and full reintroduction in 2011. That law has generated considerable debate on how changes in the estate tax and its ultimate repeal may affect charitable bequests. In this article from The Planned Giving Design Center, David Joulfaian, from the Department of the Treasury's Office of Tax Analysis, offers his personal analysis and opinion.

(7-15-09) House Democrats have unveiled America's Affordable Health Choices Act of 2009 (H.R. 3200), their version of comprehensive healthcare reform legislation. H.R. 3200 bill does not include a cap on the charitable deduction. The bill does include a number of revenue raisers, including a surtax of 1 percent on couples with modified AGI of between $350,000 and $500,000; a surtax of 1.5 percent on couples with a modified AGI of $500,000 to $1 million; and a surtax of 5.4 percent on couples with a modified AGI in excess of $1 million. Senate Democrats will work on their version of healthcare reform legislation after the August recess. For background on this issue click here.

(7-22-09) The Women's Philanthropy Institute at the Center on Philanthropy at Indiana University has published Making Philanthropy Count: How Women are Changing the World. The report summarizes recent trends and provides deeper understanding about why gender matters in philanthropy. Copies are available to purchase for a special rate of $20 each, which expires July 31, 2009.

(7-24-09) Efforts to push for an expanded IRA Charitable Rollover or other have been slowed by the current congressional focus on healthcare reform. Congressional Quarterly reports that it’s rare to have so many legislative committees involved in one effort — and for that issue to be a top priority for so many members. Not only are lower-profile issues on the back burner, but the Senate Finance Committee has yet to schedule a single hearing, member meeting or markup on the future of the estate tax, which is set to disappear in 2010 and then revert to full force in 2011.

JUNE 2009

(6-30-09) The Partnership, in conjunction with other national organizations representing the nonprofit sector, sent a letter to members of the Senate Budget Committee and the Senate Finance Committee urging them to oppose both President Obama’s original proposal and a modified proposal to limit the value of itemized deductions for charitable contributions. Currently, taxpayers earning more than $200,000 annually and families earning more than $250,000 annually can take itemized deductions at a rate equal to their marginal tax bracket, 33 percent or 35 percent, respectively. President Obama has proposed limiting itemized deductions for these taxpayers at a 28 percent rate beginning in 2011. A modified proposal has also been suggested that would limit itemized deductions to 33 percent or 35 percent for taxpayers whose income tax brackets would increase to 36 percent or 39.6 percent, respectively, in 2011. Organizations joining the Partnership in signing onto this letter include American Society of Association Executives, Association of Fundraising Professionals, Association for Healthcare Philanthropy, and Council for Advancement and Support of Education.

(6-22-09) The Partnership has joined forces with other leading national nonprofit organizations to speak out against any proposal that would reduce the federal charitable income tax deduction. Throughout this year, the White House has advocated offsetting the cost of healthcare reform by capping the value of all itemized deductions, including the charitable deduction, at the 28 percent income tax rate, rather than allowing a value as high as the 35 percent rate. Members of the coalition currently include:

(6-19-09) The Bureau of National Affairs reported in its June 18 Daily Report for Executives on the Partnership's efforts to encourage Congress to reject a proposal to reduce the charitable deduction. The Daily Report, which is widely read by Congressional policy-makers, included this quote from PPP's June 17 open letter to Congress, "Tax incentives for charitable giving send an essential message about the value our society places on voluntary giving . . . The true beneficiaries of the charitable donation are not the generous Americans who make charitable gifts, but all citizens whose local communities, nation, and world are made better through the work of charitable organizations."

(6-19-09) The American Council on Gift Annuities has announced that they are reaffirming the recommended Schedule of Rates that became effective February 1, 2009. ACGA will continue reviewing factors that affect the rate recommendations. Related documents include ACGA's 2009 Rates Report, and their Best Practices Document. Information on both can be found at www.acga-web.org.

(6-19-09) The Philanthropy Roundtable has released a new report on charitable giving and the government’s relationship with foundations and charities. The report, How Public Is Private Philanthropy? Separating Reality from Myth is a comprehensive legal analysis that examines the claim that charitable funds are “public money” because they are exempt from federal taxes, receive state charters, and are subject to oversight by state attorneys general. The report says that "based on numerous applicable legal precedents, the public-money assertion is not well grounded." The Philanthropy Roundtable is a national association of individual donors, corporate giving officers, and foundation trustees and staff.

(6-18-09) Both the Senate and House are continuing to debate healthcare reform, including options for paying for a major overhaul of the nation's healthcare system. Revenue options still on the table include a significant modification of the standard hospitals would have to meet in order to retain tax-exempt status and President Obama's budget proposal to significantly lower the charitable deduction. Draft legislation could be released within weeks, possibly with committee mark-ups coming after the July Fourth recess. Both chambers have set an August deadline for floor action on healthcare reform legislation.

(6-17-09) The Partnership for Philanthropic Planning has issued an open letter to Members of Congress on a proposal to offset the cost of comprehensive healthcare reform legislation with a cap on itemized deductions. The letter urges lawmakers to reject the current White House budget plan to cap itemized deductions at 28 percent for taxpayers earning more than $250,000 a year. The letter states the federal government must continue to support philanthropy, and continues, "Tax incentives for charitable giving send an essential message about the value our society places on voluntary giving and the important role of charitable organizations in meeting critical individual and community needs. The true beneficiaries of the charitable donation are not the generous Americans who make charitable gifts, but all citizens whose local communities, nation, and world are made better through the work of charitable organizations."

(6-16-09) Tanya Howe Johnson, President and CEO of the Partnership for Philanthropic Planning, participated in the bi-annual Key Philanthropic Organizations Committee (KPOC) meeting June 2, 2009, in Washington, D.C. KPOC, appointed by the Executives, brings together a diversity of the nation’s top philanthropic leaders for in-depth discussions on some of the most pressing issues facing the nonprofit sector.

KPOC members attending alongside Johnson included chief executives from the Meals on Wheels Association of America, American Kidney Fund, Narcotics Anonymous World Services, National Association for Gifted Children, Multiple Sclerosis Association of America, among others. Issues discussed included the effects of the current economic climate on nonprofit operations and fundraising, the use of social media by philanthropic organizations, nonprofit priorities for the 2009/2010 legislative agenda, and nonprofit partnerships and collaborations.

The Partnership for Philanthropic Planning has taken a special interest in encouraging partnerships and collaborations, a key component of PPP’s strategic plan. KPOC participants discussed the development of a best practice model to encourage collaboration, both within the sector and with for-profit partners. Additionally, the Partnership joins ASAE and other key philanthropic organizations in supporting a position on legislation and regulation that recognizes the vital role of voluntary giving in our society. Johnson said, “A critical role for PPP is to participate in shaping the direction of issues in the philanthropic sector and to build partnerships for doing so. KPOC is one of these partnerships. Through conversations such as these, PPP members have a voice in important decisions affecting philanthropy.”

Your support of the Partnership’s efforts through membership or voluntary contributions is much appreciated.

(6-12-09) The Senate Health, Education, Labor and Pensions (HELP) Committee has formally announced its broad healthcare reform proposal, called the “Affordable Health Choices Act.” The bill avoids some of the more controversial issues, including any details of how to pay for the ambitious reform plan. Sen. Chris Dodd (D-CT), tapped by HELP Committee Chairman Edward Kennedy (D-MA) to lead the committee’s healthcare effort, said the omissions were intentional to spark bipartisan debate. The committee’s ranking member, Sen. Mike Enzi (R-WY) said, “Health care reform will affect every single American life, and it will carry a large price tag. We cannot afford to rush and make mistakes.”

(6-11-09) Giving USA 2009 shows that charitable giving in the United States is estimated to be $307.65 billion for 2008. This is a 2 percent decline compared with the revised estimate of $314.07 billion for charitable giving in 2007. The decline is 5.7 percent after adjusting for inflation. Giving USA is a publication of Giving USA Foundation™ and is written and researched at the Center on Philanthropy at Indiana University. The report provides details about this estimate, about the allocation of charitable gifts by source of contribution and by type of recipients, and about studies that appeared in 2008 that relate to fundraising. Orders for the book and other materials can be placed here.

(6-11-09) The Canadian Association of Gift Planning has announced that the Canada Survey of Giving, Volunteering and Partnering has been released. The survey was conducted in 2007 by Statistics Canada. The shows that: 84% of the Canadian population over age 15 have made a charitable donation; an increase of 12% in donations from 2004; average annual donation increased by 9% from 2004. To view the final report, please click here.

(6-08-09) Senate Finance Committee Chairman Max Baucus has indicated that the Finance Committee could release a healthcare reform package the week of June 15, with votes on it coming as early as the week of June 22. As part of this healthcare reform package, the committee has been examining several financing options and a range of revenue raisers to offset the massive cost of healthcare reform. Since February, the White House has been pushing for a cap on itemized deductions that would reduce the charitable contributions that could be deducted for taxpayers earning more than $250,000 from a 35 percent rate to a 28 percent rate. Earlier this week, President Obama wrote to Chairman Baucus and reiterated his desire to cap itemized deductions to pay for healthcare reform. PPP will issue an open letter to lawmakers in advance of any Finance Committee action. To read PPP's past statement on the White House proposal and coverage of this important issue, click here.

MAY 2009

(5-28-09) The Obama administration continues to support a cap on the tax deduction for charitable contributions at 28 percent. On May 27, Jeffrey Liebman, executive associate director and chief economist for the Office of Management and Budget, said the administration favored the deduction limit over other health insurance-related proposals aimed at funding health care reform. He also said that recent gains in the S&P 500 are more than enough to offset the adverse effect that the proposal might have on charitable giving. In his fiscal year 2010 budget, Obama proposed reducing the charitable contributions that could be deducted for taxpayers earning more than $250,000 from a 35 percent rate to a 28 percent rate as a way to pay for national health coverage. To read PPP's statement and prior coverage click here.

(5-27-09) Virginia Representatives Rick Boucher (D) and Bob Goodlatte (R) have introduced legislation that would prohibit patents on tax planning methods, including charitable tax planning strategies. The Partnership supports the American Institute of Certified Public Accountants in the position that U.S. tax laws and tax planning strategies should be equally applied and available to all taxpayers. The 77 tax strategy patents that have been approved and the 129 that are pending apply to a broad range of areas including charitable contributions, estate and gift taxes, pension plans and deferred compensation.

(5-20-09) On May 12, the Wall Street Journal published an article, “Donors Find Gift Annuities Can Stop Giving,” which raises concerns about gift annuity programs that are largely unfounded. Read the Wall Street Journal article here.

The Partnership responded with a letter to the editor, and other individuals and organizations, including the American Council on Gift Annuities, have also responded. Although the negative publicity is unfortunate, this article does provide an opportunity to remind donors, legislators and the general public about the true benefits and safety of gift annuities, based on the experience of thousands of charitable organizations across the nation. The Partnership’s will share correct information with legislators and regulators in Washington, DC.

Resources that will help planners address concerns about gift annuities that may be raised by donors who have read the article:

(5-18-09) President Obama's proposal to limit the deductibility of charitable contributions from 35 percent to 28 percent for taxpayers earning more than $250,000 continues to be promoted by the White House despite significant opposition from the charitable community and Congress. The deductibility limit was again included in tax and revenue proposals released by the administration May 11. The Partnership believes that tax incentives for charitable giving send an essential message about the value our country places on voluntary giving. The White House argues that the effect on charitable giving would be minimal. To read PPP's statement and prior coverage click here.

(5-13-09) On May 12, the Wall Street Journal published an article, “Donors Find Gift Annuities Can Stop Giving,” which raises concerns about gift annuity programs. Frank Minton, a past chair of PPP and past president of ACGA, has written a letter to the editor to clarify wrong or misleading statements in the article. PPP and ACGA are also considering organizational responses. ACGA provides the following resources that will help planners address concerns about gift annuities that may be raised by donors who have read the article:

Read the Wall Street Journal article here.

(5-04-09) The IRS has released Publications 1457, 1458 and 1459 in which it illustrates the method for using actuarial factors for certain income tax valuations of future interests. Included is a new mortality Table 2000CM which is effective May 1, 2009. Compared to the existing Table 90CM, life expectancies under the 2000 Table are slightly greater each year until age 101; from age 102 up to the maximum calculated age of 110 years there is actually a decrease. The rate of increase in life expectancy ends at age 76. Gift planners will find that the increase in life expectancy increases the value of an income interest, and reduces the value of a remainder interest.
APRIL 2009

(4-30-09) Both the House and Senate have approved a fiscal year 2010 budget resolution, which contains a number of provisions related to charitable giving. The budget resolution is a non-binding document, setting out a blueprint for how Congress will move major legislation over the next year. Among other charitable provisions the resolution includes language in support of expanding the IRA Charitable Rollover. Read more...

(4-28-09) As a public service to the nonprofit sector, the Center on Philanthropy is offering a special bulletin: The American Recovery and Reinvestment Act of 2009: Act Appropriation Beneficial to the Nonprofit Sector and Key Resources for Organizations to Approach and Access Funding Sources. Written and researched by the Center on Philanthropy at Indiana University--and published in conjunction with Giving USA Foundation--the Bulletin provides timely information on how charitable and philanthropic organizations can apply for funding through the Act, also known as the stimulus package. The Bulletin contains hotlinks to numerous sites and resources. Click here to access the free bulletin.

(4-28-09) The Partnership is proud to welcome Dan Pallotta as one of the featured keynote speakers for the 2009 National Conference on Philanthropic Planning. Widely considered a trailblazer in nonprofit fundraising, Dan is the creator of groundbreaking charity events including the California AIDSRide and the Breast Cancer 3-Day Walk. In his controversial new book, Pallotta makes the case that the nonprofit sector should be deregulated to leverage the energy of capitalism to further philanthropy.

(4-28-09) The 2009 Global Philanthropy Forum was held on April 22 in Washington, D.C. This year's event focused on the need for private, public and philanthropic partnerships to address unprecendented challenges around the world. In her keynote speech, Secretary of State Hillary Rodham Clinton emphasized the importance of exercising "smart power" to foster collaborative problem-solving across sectors. Click here to review the Secretary of State's full remarks. An interview with the Forum's founder, Jane Wales, can be viewed here.

(4-24-09) On April 22, Senators Byron Dorgan (D-ND) and Olympia Snowe (R-ME) introduced the Public Good IRA Rollover Act (S. 864). This legislation would make the IRA Charitable Rollover permanent, remove the $100,000 annual limit on donations, provide IRA owners with a planned giving option starting at age 59½, and allow for distributions to supporting organizations, donor-advised funds, and private foundations. Companion legislation (H.R. 1250) was introduced in the House last month.

During his introductory remarks, Sen. Dorgan recognized the Partnership for Philanthropic Planning for our support and cited PPP's IRA rollover survey results. He read a letter from the Partnership into the Congressional Record. Read more...

(4-21-09) The Partnership is seeking nominations for candidates to serve on the national Board of Directors for the 2010-2012 term. Candidates may be nominated by planned giving councils or individuals. Nominations will be accepted through April 30, and candidates will be elected by council delegates to the Leadership Assembly on July 9. For information about board expectations and a nomination form, click here.

(4-09-09) The American Council on Gift Annuities has embarked on an in-depth review of the methodology it employs in arriving at its schedule of suggested gift annuity rates. ACGA expects to announce any changes by July 1, 2009.

(4-07-09) The Partnership for Philanthropic Planning has issued a statement in response to President Obama's proposal to decrease the charitable deduction for families earning over $250,000. The Partnership believes that tax incentives for charitable giving send an essential message about the value our country places on voluntary giving and the important role of charities in meeting critical individual and community needs. The true beneficiaries of the charitable donation are not the generous Americans who make charitable gifts, but those in need who are served by the work of charitable organizations.

(4-06-09) Tanya Howe Johnson, President and CEO, Partnership for Philanthropic Planning, will give the closing keynote presentation at the Advisors in Philanthropy national Conference on Philanthropy. The presentation will take place at the conference closing luncheon on Saturday, April 25, 2009 at the Sheraton Gateway Suites Chicago O'Hare.

AiP is a network of financial advisors who are devoted to mastering and promoting the principles and practices of client-centered planning. AiP members are dedicated to teaching and empowering their clients to effectively direct their philanthropic resources.

(4-06-09) In the next issue of The Journal of Gift Planning, the Partnership’s CEO, Tanya Howe Johnson, interviews Phil Cubeta, head of the Chartered Advisor in Philanthropy program at The American College. To preview Phil’s comments on the importance of partnership between nonprofit and for-profit planners, click here.

(4-06-09) On March 31, Congress passed the Edward M. Kennedy Serve America Act, legislation to expand and improve community service opportunities and support nonprofits

(4-06-09) The nonprofit sector has united in response to President Obama's budget proposal to limit the charitable deduction for families earning over $250,000. The following organizations have issued statements in favor of retaining the deduction and in support of the important role that voluntary giving plays in our society.

(4-03-09) The Senate approved its fiscal year 2010 budget resolution (S. Con. Res. 13) on Thursday night, April 2. The budget resolution is a non-binding document, setting out a blueprint for how Congress will move major legislation over the next year and how much discretionary spending will be available through the annual appropriations process. Before approving its budget resolution, the Senate adopted three important amendments dealing with charitable giving. Read more...

(4-03-09) The Senate approved its fiscal year 2010 budget resolution (S. Con. Res. 13) on Thursday night, April 2. The budget resolution is a non-binding document, setting out a blueprint for how Congress will move major legislation over the next year. Before approving its budget resolution, the Senate adopted three important amendments dealing with charitable giving--an extension and expansion of the Charitable IRA Rollover, and two amendments in support of tax incentives for charitable giving. Read more...

(4-01-09) Earlier this year, the National Heritage Foundation, a Virginia-based nonprofit, filed for bankruptcy. In so doing, NHF left numerous charitable gift annuity donors at risk of losing all or a portion their remaining annuities. This is an exceedingly unfortunate turn of events. However, NHF’s financial problems should not be taken as a cause for alarm by other CGA annuitants or seen as an indictment of the broader charitable community. A bankruptcy filing by a charity offering CGAs is an extremely rare event. Read more...

MARCH 2009
(3-27-09) On March 26, 2009, the Senate approved by a vote of 56-41 a nonbinding amendment to emphasize support for tax incentives for charitable giving. The amendment was offered by Senator Max Baucus (D-MT), Chairman of the Senate Finance Committee, to a national service bill (H.R. 1388). The underlying bill passed by a vote of 78-20.

Republicans and several Democrats have opposed President Obama's proposed cap on itemized charitable deductions to finance new health care proposals. Baucus has expressed skepticism about the cap, saying that Members of Congress would prefer to finance healthcare reform through modifications to provisions related directly to health care.

Treasury Secretary Timothy Geithner has said that the president is open to considering other options and speaking to Members of Congress to get their input.

(3-11-09) House Ways and Means Committee Chair Charles Rangel, D-N.Y., announced on March 10 that he plans to hold hearings on President Obama's plan to limit the value of itemized deductions, including the charitable deduction, for families earning more than $250,000. Rangel said he is "deeply concerned" about the potential effect the cap could have on donations to charitable organizations.

The Partnership believes that tax incentives for charitable giving should be preserved and strengthened because they send an essential message about the value our country places on voluntary giving and the important role of charities in meeting critical individual and community needs. The true beneficiaries of the charitable donation are not the generous Americans who make charitable gifts, but those in need who are served by the work of charitable organizations. Reducing any charitable giving incentive during these troubled economic times would be detrimental to nonprofits that are already facing financial hurdles in trying to serve the ever-increasing numbers of those in need.

To read more about President Obama's budget plan click here.

(3-03-09)On March 2, 2009, Representatives Earl Pomeroy (D-ND) and Wally Herger (R-CA) introduced the Public Good IRA Rollover Act of 2009 (H.R. 1250). This legislation would make the IRA Charitable Rollover permanent, remove the $100,000 annual limit on donations, provide IRA owners with a planned giving option starting at age 59½, and allow for distributions to supporting organizations, donor-advised funds, and private foundations. The Act, which is virtually identical to legislation promoted by the Partnership in previous Congresses, would amend the Internal Revenue Code of 1986 to expand tax-free distributions from individual retirement accounts for charitable purposes. The current law IRA Charitable Rollover allows individuals age 70½ and older to make outright charitable donations of up to $100,000 from IRAs and Roth IRAs without having to count the distributions as taxable income. That provision is set to expire in December 2009. To view President Obama's budget plan click here.

FEBRUARY 2009
(2-27-09) On Thursday, February 26, President Barack Obama released his budget outline. Among other provisions, the administration's plan includes a measure that would reduce the value of tax deductions for charitable donations by families earning more than $250,000.

To read more about President Obama's budget plan click here.

(2-17-09) According to Bill McGinly, president and CEO of the Association for Healthcare Philanthropy, final wording of the American Recovery and Reinvestment Act of 2009, passed on Friday, February 13, did NOT include language in the original House version that would have denied hospital fundraisers access to grateful patient names and addresses. A new section titled Opportunity to Opt Out of Fundraising, includes language that will strengthen the opt-out requirements regarding written communications to grateful patients and their families. This language is consistent with the existing HIPAA requirements. A separate section of the legislation includes language that increases the penalties for HIPAA violators. More information is available on the AHP web sitea>.

(2-03-09) Effective February 1, 2009, the American Council on Gift Annuities has lowered suggested gift annuity rates by .4% to .7% at each age with a maximum rate of 9.5% at ages 90 and above. Click here to view the new rates.

More than $2.5 million in gifts to charity have been reported in the Partnership's Survey of Charitable IRA Distributions, but we expect that's a very small portion of what has actually been contributed through IRAs. As of December 31, 2008, there have been only 25 responses to the survey, representing fewer than 100 individual distributions.

Ohio has the largest number of organizations reporting distributions. Many states are not yet represented in the survey data, which will be shared with legislators in our efforts to advocate for expanded charitable IRA provisions. Please use the "IRA Survey" link at the top of the page, or click here, to report charitable IRA distributions received by your organization.

Senator Charles E. Schumer (D-NY) has introduced legislation S. 111-394 that would afford the same capital gains treatment for art and collectibles as for other investment property. For purposes of the charitable deduction, a qualified artwork would include "any literary, musical, artistic, or scholarly composition, or the copyright thereon (or both)" made at least 18 months prior to the date of the contribution, for which a qualified appraisal has been obtained. The Bill would allow the artist to deduct the fair market value of the artwork, provided the contribution was for a related use.

The IRS has published a request for comments on proposed regulations implementing recent statutory changes to substantiation requirements for the income tax deductibility of gifts to charity. Written comments are to be submitted by March 11, 2009.

Commenting on IRS proposed substantiation regulations, the Association for Advanced Life Underwriting has proposed that a taxpayer be permitted to use existing safe harbors in lieu of securing a "qualified appraisal" in valuing a charitable gift of a life insurance policy.