News Archive

(3-1-13) PPP’s latest Legislative Update links to a variety of resources on recent and proposed legislation that affects philanthropic planning. Click here to learn more about the impact of ATRA, changes to the charitable deduction, and the fiscal cliff.

JANUARY 2013

(1-17-13) The IRS is reminding taxpayers about the extension of the charitable IRA rollover. To read a news release that includes some clarification about how 2013 distributions are qualified for 2012, click here.

(1-9-13) PPP chair Jeff Lydenberg and members of the Pittsburgh Planned Giving Council are quoted in a Pittsburgh Tribune article on the impact of the American Taxpayer Relief Act on charitable giving. Click here to read the article.

(1-03-13) The subcommittee on Exempt Organizations of the IRS Advisory Committee on Tax Exempt and Government Entities (ACT) has issued a report that urges the IRS to expedite the redesign of Form 1023 Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code to help improve processing of exemption applications.

(1-3-13) PPP is joining the Nonprofit Research Collaborative, to partner with other organizations, including AFP and the Giving Institute (publisher of Giving USA), to conduct broad-based research on the nonprofit sector. PPP members will be invited to participate in future NRC studies. To learn more about the NRC, click here.

(1-3-13) PPP CEO Michael Kenyon, chair Jeff Lydenberg and past-chair Mike Kateman are working with the Charitable Giving Coalition to follow up on advocacy from the “Protect Giving—DC Days” fly-in in December. To read the PPPVoice blog, with updates on coalition efforts and other PPP initiatives, click here.

(1-3-13) CharitablePlanning.com offers an annual subscription at a 20% discount to PPP members. Recent commentary includes advice on interpreting the American Tax Relief Act of 2012. To learn more, visit the PPP Member Discounts folder in the library of the PPP e-community.

(1-3-13) To read PPP’s Legislative Update that summarizes the effect of American Taxpayer Relief Act on charitable giving, including the extended charitable IRA rollover, click here. To visit PPP’s government relations site, including the Charitable Deduction Resource Center and the Charitable IRA Resource Center, click here.

(1-3-13) PPP is participating in the effort to understand and explain the practical implications of the ATRA legislation and the extended charitable IRA rollover. PPP members may join our discussion group, GIFT-PL, to pose questions and read interpretation from planners who are most familiar with the legislation. To learn more about GIFT-PL, click here.

(1-3-13) The Call for Presentations is now open for the 2013 National Conference on Philanthropic Planning. We invite planners from all sectors of the philanthropic planning community and related disciplines to propose sessions. To read a list of information to be included in your proposal, click here. To submit a proposal, click here.

(1-3-13) PPP has announced the 2013 Virtual Seminar Series, featuring top-rated presentations from the last National Conference on Philanthropic Planning. On January 16, Angela White will present “Ten Tips for Soliciting Planned Gifts from Women.” To read about the sessions and register for one program or the entire series, click here.

(1-3-13) The PPP Leadership Institute will hold its annual spring Roundtable in Chicago April 13 and 14. Roundtables provide experienced planners with an opportunity to focus on cutting edge techniques and challenges. PPP members with at least ten years of experience in charitable planning and a history of service to the profession are invited to apply for membership in the Leadership Institute. To learn more and find the Institute application, click here.

NOVEMBER 2012

(11-19-12) PPP joined with over 30 national nonprofit organizations to urge President Obama and Senate and House leaders to preserve the charitable deduction as Congress is meeting to discuss tax reform, deficit reduction and related issues. “Now is the time to maintain incentives to support the crucial work of the nonprofit sector – developing medications, improving education and health, protecting the environment, creating jobs and enhancing arts and culture,” the coalition letter states. “Nonprofits and charitable organizations supported through the generosity of millions of Americans have been crucial during times of crisis, particularly in the wake of natural disasters like Hurricane Sandy. As you can imagine, any cap or limitation on charitable deductions undermines charitable giving and would have long-lasting negative consequences.”

(11-12-12) Congress reconvenes this week for a “lame duck” session, and lawmakers will quickly get to work in order to avert the so-called “fiscal cliff”, a combination of expiring laws and automatic spending cuts that will take effect at the beginning of the year. Without any Congressional action, tax rates for all taxpayers will increase on January 1st, the payroll tax cut will expire, and other important tax policies will lapse. At the same time, $65 billion in automatic cuts to non-defense discretionary spending and defense spending will occur. There is near consensus that the fiscal cliff would be devastating to the U.S. economy, but virtually any deal to undo matters will have to include some offsetting revenue and limits to itemized deductions - including the charitable deduction - remain on top of the list for sources of such revenue.

(11-1-12) At least 30 planned giving councils and 1400 members are in the region recovering from Superstorm Sandy. Our thoughts are with them!

PPP chair Michael Kateman, chair-elect Jeff Lydenberg and CEO Michael Kenyon will join members of the Charitable Giving Coalition in Washington, DC, December 4 and 5 to talk with legislators about the importance of the charitable deduction. To read PPP’s position and talking points on charitable tax incentives click here.

(11-1-12) PPP has responded to a recent article about charitable remainder trusts that appeared on Bloomberg.com. Click here to read the PPP response.

Recordings of sessions from the 2012 National Conference on Philanthropic Planning are now available in CD and MP3 format. For a taste, click here to listen to the panel, “Building Your Dream Career in Philanthropy.” Click here for the order form that lists all available sessions.

(11-1-12) PPP members receive a 20% discount on books published by CharityChannel Press. For a complete list of titles and a link to the CharityChannel Press site, sign in to the PPP e-community and click the Library tab to see the PPP Member Discounts folder.

(11-1-12) When Congress reconvenes after the November elections, lawmakers are widely expected to finally take action on a package of expired tax provisions which will likely include an IRA Charitable Rollover provision. The Senate Finance Committee has approved a version of the tax extenders bill that would retroactively reinstate the Rollover to the beginning of 2012 and extend it through 2014. To be enacted before the end of the year, the Finance Committee-approved legislation must receive a vote on the Senate floor, and companion legislation must work its way through the House.

JUNE 2012

(6-11-12) The subcommittee on Exempt Organizations of the IRS Advisory Committee on Tax Exempt and Government Entities (ACT) has issued a report that urges the IRS to expedite the redesign of Form 1023 Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code to help improve processing of exemption applications.

(6-11-12) The Partnership for Philanthropic Planning is 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. Together, these groups represent more than 200,000 lawyers, accountants, financial advisors, philanthropic gift planners, and insurance and other professionals. In addition to PPP, Synergy Summit’s member organizations include:

MAY 2012

(5-17-12) In a May 16 hearing before the Oversight Subcommittee of the House Ways and Means Committee, five witnesses testified on federal tax issues relating to exempt organizations. Roger Colinvaux, former legislative counsel to the Joint Committee on Taxation, asked lawmakers to focus their attention on "ways to keep [exempt] organizations from abusive arrangements," by reconsidering tax incentives. Diana Aviv, president and CEO of Independent Sector, urged Congress to enact the expired tax extenders without delay, including the IRA Charitable Rollover. Bruce Hopkins, a lawyer with the Kansas City, MO firm Polsinelli Shughart, gave a general overview of the federal tax law applicable to exempt organizations. The subcommittee will accept written testimony through May 30.

(5-16-12) PPP and other members of the Synergy Summit join the National Academy of Elder Law Attorneys in celebrating Elder Law Month in May. For questions about Elder Law Month, or to receive NAELA’s free Questions and Answers When Looking For An Elder Law Attorney brochure, e-mail NAELA at amatienzo@naela.org or call 703-942-5711, ext. 230.

(5-10-12) The House Ways & Means Subcommittee on Oversight will hold a hearing on May 16th "examining operations and oversight of tax-exempt organizations." The hearing will focus on the current IRS compliance initiative related to universities, recent efforts by tax-exempt organizations to design and implement good governance standards, and recent legislative changes to the tax code dealing with tax-exempt organizations, among other topics, according to committee staff. The Subcommittee will accept written comments from interested organizations and individuals until May 30th.

(5-3-12) Save the date! A 2011 attendee called PPP’s National Conference on Philanthropic Planning a wonderful “homecoming” for gift planners. Make plans now to attend the 2012 conference on October 3 through 5 at the Hilton New Orleans Riverside.

APRIL 2012

(4-30-12) The House Ways & Means Subcommittee on Select Revenue Measures held a hearing on expired and expiring "tax extender" provisions, including the IRA Charitable Rollover. During the hearing, several Members of Congress spoke out in favor of the Rollover, including Rep. Wally Herger (R-CA), who is the sponsor of the Public Good IRA Rollover Act (H.R. 2502), which would permanently extend and expand the Rollover. Video of the three-hour hearing is available on-line, and the Subcommittee will continue to accept written comments from interested organizations and individuals until May 10th.

(4-24-12) The IRS recently launched Exempt Organizations Select Check, a new online search tool that allows users to determine if a nonprofit organization is eligible to receive charitable contributions. The IRS states that users may rely on this list in determining the tax-deductibility of contributions just as they did when Publication 78 was a separate publication. In a separate news release, the IRS offers “eight essential tips” on tax deductions for charitable contributions. The list covers, among other things, issues of proper documentation and fair market value.

(4-24-12) House Ways and Means Committee leadership have pledged “to conduct a thorough review” of the more than 60 tax extender provisions that expired at the end of 2011, including the Public Good IRA Rollover Act (H.R. 2502). The Senate Finance Committee held a hearing on tax extenders in late January where lawmakers examined what role these provisions should play in individual and business tax reform. Video of the hearing, statements from Senators, and witness testimony are still available online.

(4-24-12) The Senate failed to invoke cloture on the Paying a Fair Share Act of 2012 (S. 2230), legislation that embodies the so-called “Buffett Rule,” which would impose upon taxpayers with annual reported taxable incomes of more than $1 million an “effective tax rate” of at least 30 percent. The Buffett Rule legislation was being watched by many in the charitable sector because it included a specific carve-out for charitable giving by permitting wealthy taxpayers to receive a credit equal to the value of the charitable contributions deduction under the regular income tax.

(4-20-12) PPP has joined with some of the nation's leading charities to urge the White House to maintain strong incentives for charitable donors such as those provided for in the so-called "Buffett Rule," which is included in the President's recently released fiscal year 2013 budget. The coalition letter, joined by over 20 charities, also asks the President to reconsider his long-standing proposal to cap itemized deductions, including the charitable deduction.

MARCH 2012

(3-28-12) April is Financial Literacy Month. Declared by President Barak Obama’s 2011 Presidential Proclamation, Financial Literacy Month is just one project supported by Synergy Summit, an umbrella organization whose participants include PPP and eight other organizations that represent the leadership of the major legal, accounting, and financial service organizations in the country.

(3-26-12) Amidst concerns voiced by IRS Commissioner Doug Shulman that the failure of Congress to act on tax extender provisions like the IRA Charitable Rollover could delay the 2013 tax filing season, Ways & Means Committee Chairman Dave Camp (R-MI) and Select Revenue Measures Subcommittee Chairman Pat Tiberi (R-OH) have pledged "to conduct a thorough review" of all tax extenders. The timeline and format for such a review have not yet been set, but a hearing is expected sometime in April. The Senate Finance Committee held a hearing on extenders in late January.

(3-26-12) In a recent release, the IRS offers "eight essential tips" on tax deductions for charitable contributions. The list covers, among other things, issues of proper documentation and fair market value.

(3-19-12) The IRS has announced that the April Section 7520 rate will remain at 1.4%. The rate has stayed at this record low figure for six of the past seven months. Prior to the beginning of the economic crisis in late 2008, the rate rarely dipped below the 4.2% mark at which it stood in September of that year.

(3-15-12) The IRS has launched Exempt Organizations Select Check, a new online search tool that allows users to determine if a nonprofit organization is eligible to receive charitable contributions. The IRS states that users may rely on this list in determining the tax-deductibility of contributions just as they did when Publication 78 was a separate publication.

(3-5-12) We invite philanthropic planners and related specialists from all disciplines to respond to the Call for Presentations for the National Conference on Philanthropic Planning, October 3-5, in New Orleans. The deadline for proposals is April 9. To submit a proposal for a conference session, click here.

FEBRUARY 2012

(2-13-12) The IRS exempt organizations division released its fiscal year 2012 work plan, which details the areas where they will deploy resources over the coming year. The plan suggests IRS will use information collected on the new Form 990 to examine organizations that report unrelated business income activities but have not filed a Form 990-T. The report notes there are organizations that “consistently report significant gross receipts from unrelated business income activities but declare no tax due.” In the coming year, the IRS will also look at “connections between certain governance practices and tax compliance."

(2-13-12) The American Council on Gift Annuities submitted a statement for the record of the Senate Finance Committee’s 1/31/12 hearing: Extenders and Tax Reform: Seeking Long-Term Solutions. Prepared by Conrad Teitell, the statement asks the Committee to make the expired Charitable IRA Rollover permanent and expand it to life-income charitable gifts. PPP and ACGA have a long record of support for a permanent and expanded IRA Charitable Rollover. Click here to view other PPP resources on the Charitable IRA Rollover.

(2-13-12) President Obama released his fiscal year 2013 budget and it once again calls for limiting the value of itemized deductions - including the charitable deduction - at 28 percent for couples with incomes of more than $250,000 and individuals with incomes of more than $200,000 (see page 39). The budget proposal also includes the so-called "Buffet Rule," which would require that individuals earning more than $1 million per year pay at least a 30% effective tax rate. The budget proposal specifically carves out the charitable deductions from this change, however, by stating that the rule should be "implemented in a way that is equitable, including not disadvantaging individuals who make large charitable contributions" (also see page 39).

(2-7-12) Senator Sheldon Whitehouse (D-RI) introduced the Paying a Fair Share Act (S. 2059), which would require that individuals earning more than $1 million per year pay at least a 30% effective tax rate. Notably, S. 2059 preserves incentives for charitable giving by permitting wealthy taxpayers to receive a credit equal to the value of the charitable contributions deduction under the regular income tax. This legislation builds on a proposal put forth by President Obama during his State of the Union address.

(2-2-12) PPP headquarters was surrounded by festivities for Super Bowl XLVI. To visit our gallery of super preparations and events, click here.

JANUARY 2012

(1-25-12) During his State of the Union address, President Obama once again proposed limiting tax deductions for certain high-income taxpayers, and he specifically called for measures to ensure that individuals making over a million dollars a year pay a minimum effective tax rate of at least 30%. In conjunction with the State of the Union, however, the White House did release a document entitled "Blueprint for an America Built to Last," which says "the Administration will work to ensure that this rule is implemented in a way that is equitable, including not disadvantaging individuals who make large charitable contributions." PPP will closely monitor any such tax plans put forth by the President.

(1-25-12) The Senate Finance Committee is set to hold a hearing on January 31st to examine "tax extenders" such as the IRA Charitable Rollover. In a news release about the hearing, Finance Committee Chairman Max Baucus (D-MT) said lawmakers will "discuss how best to approach tax extenders in order to create certainty" and "evaluate tax extenders through the lens of tax reform, evaluating what role tax extenders should play in a reform process aimed at broadening the tax base, lowering rates and making the tax code more fair, efficient and simple."

(1-10-12) According to a Joint Committee on Taxation report on so-called "tax expenditures", households earning more than $200,000 a year in 2010 received more than half of the $36 billion per year in forgone federal revenues from the charitable deduction (table 3, page 49). The Administration is likely to use this finding to once again call for capping the value of the charitable deduction at 28 percent for certain high-income taxpayers. The JCT report also provides cost estimates for renewal of the IRA Charitable Rollover, which expired at the end of 2011.

(1-5-12) Congress recessed for the holidays without taking any action on the IRA Charitable Rollover, so the provision expired on December 31st. In addition to the Rollover, there are about 60 other tax provisions that expired at the end of 2011, and when Congress reconvenes later in January, lawmakers will be under pressure to retroactively extend many of these tax provisions. PPP will continue to push for inclusion of the Rollover in whatever “tax extenders” package is under consideration in the coming months.

(1-4-12) The Partnership for Philanthropic Planning is pleased to announce its governing officers for next year. These five individuals will serve on PPP’s Executive Committee and will help lead the Board of Directors throughout 2012. Chair: Michael W. Kateman, executive director, development, alumni and public relations, Columbia College, Columbia, MO Chair-elect: Jeffrey Lydenberg, vice president, consulting, PG Calc Inc., Cincinnati, OH Secretary: Jill Dodd, partner, Manatt, Phelps & Phillips, LLP, San Francisco, CA Treasurer: Melanie Schnoll Begun, managing director, Morgan Stanley Smith Barney Philanthropic Services, New York, NY Conference Program Chair: Greg Sharkey, senior philanthropy advisor, The Nature Conservancy, Granville, OH

DECEMBER 2011

(12-20-11) PPP and its coalition partners have written to members of the Senate Finance Committee and the Joint Select Committee on Deficit Reduction urging lawmakers to preserve the current charitable deduction during future debates on tax reform and deficit reduction. The letter emphasizes that proposed changes to the charitable deduction would adversely impact the ability of charities nationwide to raise the “the necessary resources to provide critical philanthropic services that ensure shelters for the homeless, food for the needy, healthcare services for those who lack access, programs that improve civic and cultural vitality and other necessary endeavors.” PPP anticipates that Congress will continue to pursue proposals to eliminate or reduce the charitable deduction throughout at least the beginning part of next year.

(12-20-11) Statistics Canada has released 2010 statistics on charitable donors, based on Canadian tax filers. Donations were up 6.5 per cent from 2009. The number of donors increased 2.2%. The national median donation was $260, which was $10 more than the median in 2009.

(12-20-11) Americans give more to help others than the residents of 152 other countries, according to a new global survey by the Charities Aid Foundation. Last year, the US ranked 5th. The poll asked people whether they had donated money to a charity, volunteered their time, or helped a stranger in the previous month. Following closely behind the United States was Ireland, Australia, New Zealand, and the United Kingdom (57). Researchers said they were still assessing the results to figure out why each country had landed where it did on the rankings.

(12-12-11) A new study by a collaborative that includes the Indiana University Center for Philanthropy and GuideStar, among others, shows that many U.S. charities are facing both fiscal stress and increased demand for their services. In a difficult climate, 44% of survey respondents report that they expect to increase the budget for major gifts fundraising in 2012. Click here to read the full report.

(12-12-11) In three out of four high net worth households, women are either the sole decision maker or equal partner in decisions about charitable giving, according to the Bank of America Merrill 2011 Study of High Net Worth Women’s Philanthropy. To read the full report, click here.

NOVEMBER 2011

(11-21-11) The American Council on Gift Annuities has approved a new schedule of suggested maximum gift annuity rates which will become effective January 1, 2012. At ages older than 60, when the majority of gift annuities are issued, one-life rates will decline by 0.5% to 0.8%. Full gift annuity rates schedules are available on the ACGA website.

(11-14-11) PPP’s President and CEO, Tanya Howe Johnson, was recently honored with a Special Service Award by the Minnesota Planned Giving Council. The award was presented at the council’s 35th Annual Conference, where Johnson was the closing keynote speaker. Craig Wruck, former PPP chair and recipient of both PPP’s Distinguished Service Award and MPGC’s Clinton A. Schroeder Distinguished Service Award presented the award on behalf of MPGC.

(11-9-11) The Joint Select Committee on Deficit Reduction is drafting tax code and is slated to introduce recommendations at the end of the month. Republicans in the Senate may be willing to accept the elimination of certain tax deductions - including the charitable deduction - in exchange for a permanent reduction in the marginal tax rates. PPP supports tax incentives that encourage charitable giving. Any changes to the deduction that would diminish charitable giving will eliminate the funds that charities need to provide social services, healthcare, education, housing and other essential programs and services that assist those in need.

OCTOBER 2011

(10-27-11) PPP’s next Virtual Seminar is “Data for Sale: Collecting and Using Data for Gift Planning,” on November 16 at 1:00 p.m. Eastern time. To learn more about the program and speakers and to register for the webinar, click here.

(10-19-11) The Senate Finance Committee held a hearing on charitable giving incentives and the issue of reforming the charitable deduction took center stage with committee members and witnesses debating various proposals for dramatically altering the deduction. Several lawmakers, including Senators Hatch and Thune, voiced strong support for the deduction at the hearing. A complete video recording of the day's hearing, statements from Senators, and written testimony from witnesses are available online.

(10-14-11) The charitable deduction will be a key focus as the Senate Finance Committee prepares to hold a hearing titled Tax Reform Options: Incentives for Charitable Giving on Tuesday, October 18. The Committee will discuss how some key proposals to change the federal tax code would affect nonprofits. The hearing will take place at 10:00 am Eastern time and will be broadcast online. To read more about the charitable deduction visit PPP’s Charitable Deduction Resource Center.

(10-12-11) President Obama’s plan to limit the value of charitable deductions for wealthy people would cost nonprofits at least $2.9-billion and perhaps as much as $5.6-billion, according to a study by the Urban Institute’s Center on Nonprofits and Philanthropy. The study also found that a plan proposed last year by a deficit-reduction panel to replace the charitable deduction with a 12-percent tax credit would have a far bigger effect on charitable gifts by decreasing donations by an estimated $9.7-billion to $24.6-billion. The study is one of several forthcoming projects paid for by a grant from the Bill & Melinda Gates Foundation.

SEPTEMBER 2011

(9-22-11) PPP has once again joined with some of the nation's biggest charities to urge Congressional leaders to do all they can to protect the value of the charitable deduction. This latest coalition letter was sent to all members of the Senate Finance Committee and the "Super Committee" this week as they review the President's American Jobs Act, which calls for a cap on the deduction for certain individuals and families.

(9-21-11) Online registration has closed for the 2011 National Conference on Philanthropic Planning. However, we will be accepting on-site registrations. Come to the PPP registration desk at the Marriott Rivercenter beginning Tuesday, October 4 at 12:00 pm and indicate that you’d like to register. Our staff will be happy to assist you at that time. The National Conference on Philanthropic Planning is a unique meeting place for all professionals who work together to make charitable giving most meaningful for their donors and clients. The conference provides more than 45 sessions that feature speakers, topics, education formats and networking opportunities designed to engage all partners in the philanthropic planning process. The conference will be held October 4-6 at the Marriott Rivercenter in San Antonio, Texas.

(9-20-11) Tanya Howe Johnson, CAE, will step down from her position as president and CEO of the Partnership for Philanthropic Planning (PPP) in April 2012 after over 20 years leading the organization. PPPs individual and council members include more than 8,000 fundraisers and financial advisors involved in the process of helping donors plan and make major charitable gifts. A search process will begin in the next few months. Click here for more information.

(9-19-11) President Obama has signed into law the America Invents Act (Public Law 112-29), patent reform legislation that would ban the future patenting of tax strategies, including charitable strategies. Under this new law, the Patent and Trademark Office will not be allowed to approve any more tax strategy patents, whether they are now pending or in future applications. PPP joined with the American Institute of CPAs and a coalition of national organizations in efforts to support this important provision. The U.S. Patent and Trademark Office has clarified that tax strategies are deemed to be "within the prior art" and therefore non-patentable, although exclusions apply regarding products used solely for preparing returns or financial management.

(9-14-11) Amidst news of a potential United States Postal Service default later this year, lawmakers are stepping up reform efforts, which could have a drastic effect on long-established nonprofit postal policy. Rep. Darrell Issa (R-CA), Chairman of the House Oversight and Government Reform Committee, for example, has introduced the Postal Reform Act of 2011 (H.R. 2309). This legislation includes a provision that would reduce the discount that nonprofits receive on postage rates from 40 percent to 10 percent.

(9-13-11) President Obama has formally sent to Congress his American Jobs Act, a $450 billion jobs package that calls for elimination of the payroll tax for workers, a tax break for companies that hire unemployed individuals, and certain amounts of federal funding and aid to states, among other provisions. Notably, the package would be fully paid for, with the cost of nearly all of the bill offset by limiting the value of itemized deductions - including the charitable deduction - for individuals earning more than $200,000 per year and families earning more than $250,000 per year.

(9-12-11) The Senate Finance Committee will hold a hearing the second week of October focusing exclusively on charitable giving incentives. The hearing is expected to examine President Obama’s budget proposal to limit the value of the charitable deduction as well as a host of other issues such as tax “extenders” like the IRA Charitable Rollover.

AUGUST 2011

(8-18-11) Does Congress Really Care About the Charitable Deduction? In the Congressional debate on fundamental tax reform, the charitable contributions deduction (commonly referred to on the Hill as a "tax expenditure") is widely considered a legitimate target for reduction or even elimination. At the National Conference on Philanthropic Planning Tim Hanford, former tax counsel to the House Ways and Means Committee, and Doug White, academic director of the Heyman Center for Philanthropy and Fundraising at New York University, bring the debate to the dinner table during the opening keynote presentation on Tuesday, October 4. The National Conference on Philanthropic Planning is a unique meeting place for all professionals who work together to make charitable giving most meaningful for their donors and clients. The conference provides more than 45 sessions that feature speakers, topics, education formats and networking opportunities designed to engage all partners in the philanthropic planning process. The conference will be held October 4-6 at the Marriott Rivercenter in San Antonio, Texas.

(8-15-11) As Congress and the Administration continue to search for ways to raise revenue, limiting the value of itemized deductions, including the charitable deduction, is definitely on the table. In talks about a major rewrite of the tax code the value of the charitable deduction as a “tax subsidy” is clearly being questioned. For more information and to take action to preserve this critical giving incentive, visit PPP's charitable deduction resource page .

(8-4-11) On Monday, August 1, the House passed debt-ceiling legislation that will now be voted on in the Senate. The House legislation does not make any changes in the tax deduction that donors receive for making charitable gifts. It does however, identify $900-billion in spending reductions now and would require Congress to pass $1.5-trillion more in cuts by December 23 of this year. It is likely that those additional cuts will include reducing or eliminating the value of the charitable deduction. It is also expected that the cuts in federal spending will reduce funding significantly for many nonprofits.

JULY 2011

(7-27-11) Delegates from the Partnership for Philanthropic Planning’s member councils have elected six new members to the Partnership's 2012 board of directors, who will each serve three-year terms beginning January 2012: Wendy Chou, Director of Planned Giving & Advisor Relations, Silicon Valley Community Foundation; Steven T. Clark, Director of Gift Planning, Virginia Tech; Laura Hansen Dean, Executive Director of Gift Planning, The University of Texas at Austin Joseph E. Hancock, Senior Trust Attorney, Baptist Foundation of Texas Christopher L. Kelly, Vice President, Comerica Charitable Services Group; Melanie Norton, Director of Gift Planning, DePauw University To read biographies of the 2012 board class click here.

(7-14-11) PPP has joined with over 20 national organizations to urge top Congressional leaders to protect the value of the charitable deduction by opposing any efforts to reduce or cap the value of itemized deductions for charitable contributions. A coalition letter was sent to Capitol Hill as lawmakers are engaged in high-stake negotiations on the debt ceiling and deficit reduction. For more information about this issue and how it may affect the charitable deduction, visit PPP's charitable deduction resource page.

(7-11-11) As August 2nd, the date the Treasury Department has estimated the United States will exceed its borrowing authority rapidly approaches, the White and Congress are continuing their negotiations on deficit reduction and the debt ceiling. As they continue to examine ways to raise revenue, limiting the value of itemized deductions, including the charitable deduction, is on the table. In related talks about a major rewrite of the tax code the value of the charitable deduction as a “tax subsidy” is clearly being questioned. For more information and to take action to preserve this critical giving incentive, visit PPP's charitable deduction resource page.

(7-6-11) Statistics Canada has released the following 2009 data on how the economic downturn effected charitable giving in Canada.

Canadians claimed a total of $7.8 billion in charitable donations.
5.6 million Canadians, representing 23.1% of tax filers, claimed a charitable donation.
The percentage of Canadians claiming donations dropped from 24.1% in 2008 to 23.1% in 2009.
The size of the drop is virtually without precedent.

JUNE 2011

(6-24-11) The House voted to pass legislation (H.R. 1249) that would, among other things ban the patenting of tax strategies. Under the bill, the Patent and Trademark Office would not be allowed to approve any more tax strategy patents, whether they are pending or in future applications. A similar bill (S. 23) passed the Senate in March. Lawmakers must now work to reconcile the two bills before final legislation can be sent to the President who has indicated he will likely sign such patent reform legislation into law. PPP joined the American Institute of CPAs and a coalition of national organizations in efforts to enact this legislation.

(6-13-11) Despite the poor economy, U.S. nonprofit hospitals and health care systems managed an 8% increase in philanthropic donations last year, to over $8 billion. But fundraising costs climbed and return on investment dipped, according to the fiscal year 2010 Report on Giving USA issued today by the Association for Healthcare Philanthropy. Planned gifts, including bequests, charitable gift annuities and charitable remainder trusts accounted for 9.5% of donations last year, similar to pre-recession levels.

MAY 2011

(5-25-11) The Congressional Budget Office released a report, which analyzes 11 options for changing the tax treatment of charitable giving under categories of: retaining the current deduction but adding a floor, allowing all taxpayers to claim the deduction, replacing the deduction with a tax credit equal to 25 percent of donations, or a 15 percent tax credit. The report was prepared at the request of the House Budget Committee.

(5-16-11) The House Judiciary Committee has passed patent reform legislation (H.R. 1249) containing a ban on the practice of patenting tax strategies, including charitable planning strategies. PPP joined the American Institute of CPAs and a coalition of national organizations in efforts to enact this legislation. H.R. 1249 now goes to the full House for consideration with debate and a vote possibly taking place within the next two months. The Senate approved companion legislation (S. 23) in March, which contains ban language similar to that in H.R. 1249.

(5-10-11) The American Council on Gift Annuities has announced a new schedule of suggested maximum rates for CGAs established on or after July 1, 2011. The new schedule reflects ACGA’s long-standing residuum target of 50%, with an additional requirement that the present value of the residuum be at least 20% of the gift amount. It also includes a more conservative investment return assumption and the results of a recent ACGA study on annuitant mortality. In general, the new rate schedule contains slightly lower rates for single-life annuities for ages 69 and younger, and slightly higher rates for single-life annuities at ages 75 and older. Similar changes apply to 2-life gift annuity rates.

(5-3-11) Read Robert Sharpe’s editorial in The Chronicle of Philanthropy about the impact of proposed new taxes on charitable gifts.

APRIL 2011

(4-18-11) Gallup released a poll showing that 7 in 10 Americans oppose eliminating the charitable deduction. This strong level of support holds true even when proposed elimination of the deduction is framed as part of a plan to either lower the overall income tax rate or as a way to reduce the federal budget deficit.

(4-15-11) The House Judiciary Committee passed patent reform legislation (H.R. 1249) containing a ban on the practice of patenting tax strategies. H.R. 1249 now goes to the full House for consideration. The Senate approved companion legislation (S. 23) last month, which contains ban language similar to that in H.R. 1249.

(4-15-11) President Obama signed into law H.R. 4, legislation which repeals the enhanced Form 1099 reporting requirements that were set to take effect next year. Enacted as part of last year's healthcare reform law, the enhanced reporting rules would have required all businesses and tax-exempt organizations to issue a Form 1099 to all vendors from whom they buy goods totaling $600 or more annually.

(4-14-11) The IRS has released its 2011 “dirty dozen” list of tax scams, which once again includes the abuse of charitable organizations and deductions. The IRS states that it "continues to observe the misuse of tax-exempt organizations" and that "abuse includes arrangements to improperly shield income or assets from taxation and attempts by donors to maintain control over donated assets or income from donated property." As for deductions, the IRS said it "continues to investigate various schemes involving the donation of non-cash assets including situations where several organizations claim the full value for both the receipt and distribution of the same non-cash contribution."

(4-14-11) President Obama unveiled an aggressive deficit reduction framework which calls for a $4 trillion reduction in the deficit to come from a combination of spending cuts and tax reform, and significant revisions to major itemized deductions like the charitable deduction are possible. During a speech yesterday, the President indicated his displeasure that the tax code allows for what he sees as government spending through itemized deductions, adding, "while the goals of these expenditures are laudable, like home-ownership and charitable giving, we cannot deny that they mostly benefit the wealthy." Vice President Biden will begin regular meetings with Congressional Leadership early in May with the hopes of enacting a deficit reduction plan by the end of June.

(4-11-11) Plan to attend the National Conference on Philanthropic Planning, October 4-6 at the Marriott Rivercenter, on the River Walk in San Antonio. Registration will open in June. More info...

(4-6-11) The Senate voted 95-5 to approve patent reform legislation (S. 23) containing a ban on the practice of patenting tax strategies. Attention now turns to the House where Judiciary Committee Chairman Lamar Smith (R-TX) recently introduced his version of patent reform legislation (H.R. 1249), which contains ban language similar to that in S. 23.

(4-6-11) Both the Senate and House have now approved legislation (H.R. 4) to repeal the new Form 1099 reporting requirements set to take effect next year. Enacted as part of last year's healthcare reform law, the new reporting rules would require all businesses and tax-exempt organizations to issue a Form 1099 to all vendors from whom they buy goods totaling $600 or more annually. H.R. 4 will now be sent to President Obama for his signature.

MARCH 2011

(3-31-11) House Judiciary Committee Chairman Lamar Smith (R-TX) unveiled his version of patent reform legislation (H.R. 1294), which contains a ban on the practice of patenting tax strategies. This ban language is similar to language included in the patent reform legislation (S. 23) that passed the Senate by a vote of 95-5 earlier this month.

(3-30-11) Representative John Lewis (D-GA), Ranking Member of the House Ways & Means Subcommittee on Oversight, has introduced the Artist-Museum Partnership Act of 2011, H.R. 1190, which would allow a charitable deduction equal to fair market value for donations of literary, musical, artistic, or scholarly creations of the donor.

(3-30-11) As part of a series of hearings this year on tax reform, the Senate Finance Committee heard testimony today on whether tax incentives work or whether they simply reward behavior that would otherwise occur absent such tax incentives. While the prepared testimony did not focus on the charitable deduction specifically, Senator John Thune (R-SD), a member of the Finance Committee, asked witnesses about the deduction, including a couple of questions about the potential impact of President Obama's proposal to cap the charitable deduction.

(3-29-11) According to a recent inter-generational research study, Canadians are more likely than Americans to donate to charity via a monthly giving program. Findings also noted that mainstream media is where most Canadians of all generations first learn about a cause they later support. The Canadian Association of Gift Planners, the European Association for Philanthropy & Giving, and the Partnership for Philanthropic Planning are partners in the International Gift Planning Alliance.

(3-21-11) The Real Property, Trust and Estate Section of the American Bar Association has invited PPP members with expertise in the areas encompassed by RPTE to be included in a speakers database designed to help open speaking opportunities to under-represented groups. The ABA definition of diversity includes gender, religion, race, ethnicity, national origin, sexual orientation, age, and persons with disabilities. More info...

(3-21-11) On March 30, the Senate Finance Committee will hold a hearing on "How Do Complexity, Uncertainty and Other Factors Impact Responses to Tax Incentives?" The hearing seeks to examine whether tax incentives work or whether they simply reward behavior that would otherwise occur absent the tax incentive. Committee leaders plan to review the role of tax incentives on charitable giving during this process.

(3-16-11) The Association for Healthcare Philanthropy released the results of a February member survey on the effects of proposed cuts to the charitable deduction. The vast majority of respondents indicate that the proposed tax code changes will negatively affect their fundraising programs. They also reported that tax deductibility is an important consideration for their donors.

(3-15-11) Senators Chuck Schumer (D-NY) and Olympia Snowe (R-ME) have introduced the Public Good IRA Rollover Act of 2011 in the Senate (S. 557). This legislation, long advocated by PPP, would extend the IRA charitable rollover beyond 2011, lift the $100,000 cap on distributions, and allow planned gifts beginning at age 59½. Additionally, it would allow IRA charitable rollovers to be made to donor-advised funds, supporting organizations, and private foundations. PPP members are encouraged to contact their Senators and ask them to support the charitable sector by adding their names to the list of co-sponsors of S. 557.

(3-15-11) The Advisors in Philanthropy have extended the AiP member rate to PPP members who would like to attend the AiP 2011 Conference on Philanthropy, April 28-29 in Chicago. PPP members may register for $299 before March 31. To receive the registration discount code contact PPP at info@pppnet.org.

(3-10-11) PPP invites experienced and innovative planners from all sectors of the philanthropic planning community to propose sessions for the 2011 National Conference on Philanthropic Planning. The Call for Presentations system is now open. Proposals must be submitted by April 4. More info...

(3-8-11) The Senate has voted 95-5 to approve patent reform legislation (S. 23) containing a ban on the practice of patenting tax strategies. Attention now turns to the House where Judiciary Committee Chairman Lamar Smith (R-TX) is drafting his own version of patent reform legislation.

(3-3-11) The House has approved legislation (H.R. 4) to repeal the new Form 1099 reporting requirements that were enacted as part of last year's healthcare reform law. The cost of H.R. 4, as approved, is offset by new limits on amounts required for repayment of advance premium assistance tax credits for health insurance. Last month, the Senate approved different legislation (S. 223) to repeal the 1099 reporting requirements which is offset by redirecting $44 billion in unobligated discretionary spending. These differences over offsets must now be resolved before final repeal legislation can be sent to President Obama for his signature.

FEBRUARY 2011

(2-24-11) The House Ways & Means Committee approved two separate bills last week to repeal the new Form 1099 reporting requirements that were part of the healthcare reform law. However, enactment of either bill is uncertain because of debate over offsets contained in one of the bills. To learn more about H.R. 705 (including offsets) and H.R. 4 (no offsets), click here.

(2-14-11) President Obama submitted his Fiscal Year 2012 Budget to Congress, and it once again includes a limit on the value of itemized deductions, including the charitable deduction, for certain tax payers. The proposal is virtually identical to language included in last year’s budget plan and calls for a 28 percent cap on itemized deductions for individuals earning more than $200,000 a year and couples earning more than $250,000 a year.

(2-4-11) The Senate Judiciary Committee voted unanimously to send patent reform legislation (S. 23) containing a ban on patenting tax strategies to the full Senate. It remains unclear when the legislation will be schedule for a vote on the Senate floor, but bill proponents are hopeful for action later this year.

(2-3-11) Help PPP report the value of charitable IRA distributions by completing our survey of IRA gifts. A new survey is now available to track distributions received by charities since the passage of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. Click here to access the web-based survey.

(2-3-11) PPP joins the AICPA and a coalition of 15 national organizations that have urged the Senate Judiciary Committee to keep a provision in S. 23, The Patent Reform Act of 2011, which would stop tax strategy patents. The bill goes to mark-up on Feb. 3. In its letter the coalition said tax strategy patents, including patents on charitable strategies “may limit the ability of taxpayers to utilize fully interpretations of tax law intended by Congress – effectively creating a monopoly for the patent holders to determine who can and cannot utilize parts of the tax code. As of now, the number of tax strategy patents have grown to over 130 issued, with more than 150 applications for patents currently pending.

(2-3-11) The Senate has attached an amendment that would repeal enhanced Form 1099 reporting requirements to Federal Aviation Administration re-authorization legislation. This marks the first successful attempt in the Senate to adopt legislation repealing the new Form 1099 requirements, which were signed into law last year as part of healthcare reform. In the House, lawmakers are also contemplating repeal of the new reporting requirements, and have indicated plans to mark up legislation soon.

JANUARY 2011

(1-10-11) The IRS has issued a statement saying that the retroactively extended IRA Charitable Rollover provision does not allow taxpayers to return required minimum distributions taken last year in order to make direct charitable IRA donations for 2010. Read more....

DECEMBER 2010

(12-20-10) President Obama has now signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which provides a two-year retroactive extension of the IRA Charitable Rollover. Specifically, the new law reinstates the Rollover for 2010 and allows any eligible gifts made by January 31, 2011 to be treated as a 2010 donation and be used to satisfy the taxpayer’s minimum distribution requirement for 2010. The new expiration date for the Charitable Rollover is December 31, 2011. More information...

(12-16-10) Yesterday, the Senate passed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 by a vote of 81-19. For details on the bill, click here.

(12-14-10) The Senate is scheduled to vote late tonight or tomorrow morning on tax legislation that would extend the IRA Charitable Rollover provision that expired at the end of 2009. Specifically, the legislation currently under consideration would reinstate the Rollover for 2010 and allow any eligible gifts made by January 31, 2011 to be treated as a 2010 donation. The legislation would also set the new expiration date for the Rollover as December 31, 2011, meaning that eligible gifts made throughout all of 2011 will qualify for favorable tax treatment. More information...

(12-7-10) President Obama announced a compromise agreement he reached with Congressional Republicans that represents a way forward on tax policy. The framework would provide a two year extension of all 2001 and 2003 individual tax cuts, a reinstatement of the estate tax for two years at an exemption level of $5 million and a top rate of 35 percent, a two year retroactive AMT patch, and a two year retroactive extension of many tax extenders provisions. The agreement does not include repeal of the new Form 1099 reporting requirement.

(12-6-10) The President's deficit commission rejected a plan that would have eliminated the charitable deduction, replacing it with a 12 percent non-refundable tax credit that would have only been available for amounts beyond two percent of a taxpayer's adjusted gross income. Although the commission's vote means that the plan will not go to Congress for a vote this year, it has caught the attention of lawmakers and the White House and is widely expected to show up in various efforts to shape budget and tax policy next year.

(12-2-10) Congress will remain in session until perhaps the third week in December. During this period, they could address a number of major tax issues, including extension of the Bush tax cuts for individuals, revival and reform of the federal estate tax, a “patch” for the alternative minimum tax, and a retroactive extension of the IRA Charitable Rollover. If the IRA Charitable Rollover is extended, gift planners will have a very short window of opportunity to structure IRA gifts before year-end.

(12-1-10) The IRS is seeking public comment on final rules (T.D. 9403) on charitable trusts. The rules were issued in 2008 to provide that in determining the character of income distributed to beneficiaries of a charitable remainder trust, taxable unrelated business income is considered income of the trust. In releasing the final rules, IRS said they had made no substantive changes to the proposed rules previously issued. Comments are due by December 31st.

NOVEMBER 2010

(11-30-10) On November 29, 2010, the Senate voted on both the Johanns and Baucus amendments to repeal the 1099 reporting requirements set to take effect in 2012. The reporting provision in question would require all businesses and tax-exempt organizations to issue a Form 1099 to vendors from whom they buy goods totaling $600 or more annually. Both amendments failed to pass under the 2/3rds rule in the Senate. The Johanns amendment paid for the repeal with unused stimulus funds, while the Baucus amendment had no offsets. Indications are that this will be the last vote on the 1099 issue this year, leaving only one calendar year before the new 1099 reporting goes into effect.

(11-30-10) A new survey from the Nonprofit Research Collaborative (NRC) finds that nonprofit organizations have seen a slight turnaround in giving so far this year that mirrors the slow economic recovery. A coalition of organizations including the National Center for Charitable Statistics (NCCS), the Association of Fundraising Professionals (AFP), the Center on Philanthropy at Indiana University, Blackbaud, GuideStar USA Inc., and the Foundation Center, joined forces to create the National Research Collaborative and conduct an end-of-year fundraising survey. Representatives of 2,356 public charities and 163 private foundations took the survey online between October 19 and November 3, 2010. “The Nonprofit Fundraising Survey: November 2010” is available here. For additional information, including other Key NRC survey findings, click here.

(11-16-10) Senate Finance Committee Chair Max Baucus (D-MT) introduced the Small Business Paperwork Relief Act, legislation that would fully repeal the new Form 1099 reporting requirements enacted earlier this year as part of the healthcare reform bill. Set to take effect in 2012, the reporting provision in question would require all businesses and tax-exempt organizations to issue a Form 1099 to vendors from whom they buy goods totaling $600 or more annually. Congressional staff indicate that Chairman Baucus' legislation may be attached to some "must pass" bill before the end of the Congressional session but that they must still find a way to offset the cost of the change, estimated at around $20 billion.

(11-15-10) Senate Finance Committee Chairman Max Baucus (D-MT) and ranking member Chuck Grassley (R-IA), along with House Ways and Means Chairman Sander Levin (D-MI) and ranking member Dave Camp (R-MI) pledged in a letter to IRS Commissioner Doug Shulman to “do everything possible” to enact AMT relief that will pass Congress before the end of the year. Last year, about 4 million people paid the tax and without another patch, more than 21 million additional households would be affected by the AMT. A one-year patch for 2010 is estimated to cost about $61.

(11-15-10) The co-chairs of the White House deficit commission released a broad proposal to overhaul the tax code and cut federal spending. Notably, the proposal from the co-chairs urges the full commission to consider severely limiting tax breaks, including those for charitable donations, and includes at least three options for doing so. The full commission is scheduled to issue its recommendations by December 1.

(11-9-10) As a benefit of the PPP’s participation in the Synergy Summit, the American Bar Association Section of Real Property, Trust and Estate Law has invited PPP members to be their guests for a teleconference discussion on Emotional & Psychological Aspects of Estate Planning & Litigation for Gay, Lesbian and Other Non-traditional Clients: What's Unique and What's Not. There will be a panel of speakers with a 20 or 30 minute presentation followed by questions from the group. There is no charge to PPP members for participation in this discussion. For more information click here.

(11-8-10) Tanya Howe Johnson, President and CEO of the Partnership for Philanthropic Planning has been appointed to the Steering Committee of 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. (11-8-10) Tanya Howe Johnson, President and CEO of the Partnership for Philanthropic Planning, has been appointed as chair of the American Society of Association Executives’ Key Philanthropic Organizations Committee. KPOC 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 include the chief executives of over 30 national nonprofits including the American Heart Association, American Cancer Society, National Human Services Assembly, National Catholic Development Conference, and Volunteers of America, among others. Encouraging partnerships and collaborations is a key component of PPP’s strategic plan - through initiatives such as KPOC, PPP members have a greater voice in important decisions affecting philanthropy.

Together, these groups represent more than 200,000 lawyers, accountants, financial advisors, philanthropic gift planners, and insurance and other professionals.

(11-8-10) In a press conference following the November 2 mid-term elections, President Obama conceded that new Form 1099 reporting requirements are “burdensome” for nonprofits. Enacted as part of the Patient Protection and Affordable Care Act passed by Congress in March, the Form 1099 requirements force all businesses and tax-exempt organizations to issue a Form 1099 to vendors from whom they buy goods totaling $600 or more annually. PPP and others have pointed out that the change, scheduled to take effect in 2012, could result in nonprofits having to issue hundreds or even thousands of forms each year, track cumulative payments to vendors, and obtain tax identification information from each vendor.

(11-8-10) The next PPP Virtual Seminar, scheduled for November 17, 2010 at 1:00 PM EST, is The Power of the Pyramid: How to Effectively Integrate Planned, Major and Annual Giving presented by Phil Purcell, vice president for planned giving and endowment stewardship at the Ball State University Foundation in Muncie, Indiana. As an organization changes focus from "planned giving" to "philanthropic planning," traditional silos need to be dismantled as staff and executive management envision and create gifts that don't necessarily fall into traditional categories. For more information or to register, click here.

OCTOBER 2010

(10-28-10) The Tax Policy Center—a project of the Urban Institute and the Brookings Institution—provides a comprehensive overview of data and opinion about estate and gift taxes. To read about the past, present and future of these taxes, including their effects on charitable giving, click here.

(10-19-10) The Chronicle of Philanthropy is sharing high points from the National Conference on Philanthropic Planning. To read the first post, on “red flags” to consider when accepting a planned gift, click here.

(10-19-10) PPP members are invited to participate in an international survey to explore the current practice and trends related to bequests and other legacy fundraising. The survey is sponsored by Give Green Canada and CharityVillage®, and many other organizations will also participate, including the Canadian Association of Gift Planners, the Association of Fundraising Professionals, and the European Association for Philanthropy and Giving. Click here to participate.

(10-18-10) As part of the Paperwork Reduction Act, the IRS is currently collecting comments on an existing final regulation, IA-44-94 (TD 8690), Deductibility, Substantiation, and Disclosure of Certain Charitable Contributions (section 1.170A-13(f) and 1.6115-1). This regulation provides guidance regarding the allowance of certain charitable contribution deductions, the substantiation requirements for charitable contributions of $250 or more, and the disclosure requirements for quid pro quo contributions in excess of $75. Written comments should be received on or before December 14, 2010.

(10-15-10) Chuck Collins has encouraged thousands of wealthy people to speak up for the estate tax to promote a fair U.S. economy. He shared his vision of the role of tax policy in promoting the common good in a keynote address to the National Conference on Philanthropic Planning on October 13. To read more about Chuck’s work, click here.

(10-6-10) In early 2010, the Partnership for Philanthropic Planning and the Association of Fundraising Professionals announced joint conversations aimed at developing an affiliation agreement and forming a united organization. Based upon those conversations, PPP and AFP have determined that at this time, seeking opportunities for collaboration will be the most effective means of working together rather than through formal affiliation. PPP and AFP affirm a shared interest in promoting ethical fundraising and supporting the fundraisers, gift planners and advisors who work with donors to facilitate philanthropy in the United States and around the world. PPP and AFP will continue to seek opportunities to work together to pursue the original goals that prompted affiliation discussions -unifying the fundraising profession and strengthening the holistic approach to serving donors and the charitable missions that they support. PPP encourages planned giving councils to continue to partner with the AFP chapter in their community and to explore new collaborations.

SEPTEMBER 2010

(9-29-10) The Partnership for Philanthropic Planning has joined a coalition of 18 national consumer and taxpayer organizations in a letter urging Congress to ban the granting of patents on tax strategies, including charitable strategies. To date, 117 tax strategy patents have been issued by the U.S. Patent and Trademark Office, which effectively create a monopoly for patent holders on certain parts of the U.S. tax code that should be public domain. Other organizations joining PPP in the letter include American Institute of Certified Public Accountants, American Association of Attorney-Certified Public Accountants, American College of Tax Counsel, American College of Trust and Estate Counsel, Certified Financial Planner Board of Standards, Financial Planning Association, and the American College. To read more.

(9-17-10) Senate Finance Committee Chairman Max Baucus (D-MT) has unveiled a new extenders package that once again includes a retroactive extension of the IRA Charitable Rollover through the end of the year. Sen. Baucus tried to attach this modified package to small business legislation (H.R. 4849) moving through the Senate but was ultimately blocked by Republicans. Although he was unsuccessful in his efforts, this new package is expected to return to the floor soon for consideration. In discussing the package Sen. Baucus said, "One way or another, Congress will address these expiring provisions. We always do. We will do so again this year."

(9-07-10) The European Association for Philanthropy and Giving has announced the appointment of Sue Daniels as Director. Sue has been serving as Interim Director of EAPG since February 2010. EAGP, headquartered in the UK, is a membership network that seeks to ensure the best possible practice in charitable giving and philanthropy in Europe. EAPG, PPP, and the Canadian Association of Gift Planners are founding members of the International Gift Planning Alliance.

AUGUST 2010

(8-30-10) The White House has released a report that outlines options for overhauling the tax code and includes a suggestion to "raise the standard deduction and reduce the benefit of itemized deductions" including the charitable deduction. The 126-page document, created by the President’s Economic Recovery Advisory Board, does not explicitly endorse any of the listed options and does not represent official White House policy.

(8-26-10) Americans give more to education than to any cause except religion. The new Giving USA: Giving to Education 2010 report indicates that while giving to education generally outpaces inflation (growing an average of 2.7 percent per year over the last 40 years), it dropped 3.6 percent in 2009. The report, a key resource for benchmarking educational fundraising, includes gifts to education from the Million Dollar List™ and a roster of billion-dollar higher education campaigns.

(8-23-10) Two programs have been added to PPP’s Virtual Seminar series: Creative Bequests and the Unalterable Will: Soliciting and Drafting Bequests and The Power of the Pyramid: How to Effectively Integrate Planned, Major and Annual Giving. To learn more and register for these programs, click here.

(8-17-10) The Joint Committee on Taxation released a detailed description (JCS-2-10) of the tax provisions in President Obama's proposed fiscal year 2011 budget, including descriptions of current law, relevant legislative proposals, and policy analysis. The report includes a discussion of the President's proposal to reduce the value of tax deductions for charitable donations as well as proposed changes to federal estate taxation and charitable bequests.

(8-13-10) The IRS has revised and released Charitable Contributions -- Substantiation and Disclosure Requirements (Publication 1771, revised June 2010). The publication explains general rules and specifications for documenting charitable deductions. It also explains new guidelines that allow charities to electronically mail documentation to donors, as well as when an acknowledgment from a charitable organization is required for the donor to claim a tax deduction.

(8-12-10) New York Governor David A. Paterson has signed into law a revenue bill that limits the tax deduction for people with state adjusted gross income above $10-million annually—about 3,500 taxpayers in New York. Those residents are now able to write off only 25 percent of their charitable contributions on their state income taxes rather than the previous 50 percent.

(8-10-10) The Congressional Research Services has released a report on new rules that will require all organizations to file a Form 1099 with the IRS for any payments totaling $600 or more made to for-profit vendors. This includes both one-time payments and cumulative payments over the year. This new reporting requirement was included in the healthcare reform bill (P.L. 111-148) signed into law in March. The new requirement takes effect in 2012, although there are several bills and amendments pending in Congress that would repeal the provision.

(8-9-10) Democratic leaders in both the Senate and House have said they plan to consider legislation dealing with the expiring 2001 and 2003 tax cuts when they return from recess in September, although the exact timing is still unknown. Many lawmakers have also indicated that this broad legislation will include various "extenders" provisions like the IRA Charitable Rollover as well as an estate tax fix.

(8-9-10) Senator Charles Schumer (D-NY, a member of the Senate Finance Committee, has introduced S. 3134 which would permanently extend the IRA Charitable Rollover. The underlying legislation addresses misaligned currencies and has 18 cosponsors.

(8-3-10) President Obama has signed into law the Wall Street Reform and Consumer Protection Act. This new law includes important language advocated for by PPP that will exempt all “activities relating to charitable contributions” from the jurisdiction of the newly-created Consumer Financial Protection Bureau.

(8-3-10) Congress has failed to act on a large package of tax “extenders,” including the IRA Charitable Rollover. The latest setback came when the Senate approved a substitute amendment to H.R. 4213, which had the effect of removing most tax extenders from the bill. The House then quickly approved H.R. 4213, and President Obama signed the legislation (now titled the Unemployment Compensation Extension Act of 2010) into law. Next steps for the extenders package remain unclear.

(8-3-10) Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking Member Charles Grassley (R-IA) have both indicated that they expect legislative language reforming the estate tax to be included as part of broader legislation that extends President Bush’s 2001 and 2003 tax cuts. A draft of that legislation could be released prior to the Senate’s August recess. Chairman Baucus indicated that it would be unlikely that the estate tax would be reinstated retroactively to the start of 2010.

JULY 2010

(7-22-10) Late on Wednesday, July 21, the Senate passed the Reid/Baucus substitute for H.R. 4213 (the extenders bill). The legislation does NOT contain the larger package of extenders, including the IRA Charitable Rollover. The House passed the revised legislation on July 22 and sent it to the President for signature. Next steps for the extenders package are still unclear. PPP will continue to work with legislators in the effort to restore the IRA Charitable Rollover.

(7-21-10) President Obama has now signed into law the Wall Street Reform and Consumer Protection Act. This new law includes important language advocated for by the Partnership and several other nonprofit organizations that will exempt all “activities relating to charitable contributions” from the jurisdiction of the newly-created Consumer Financial Protection Bureau.

(7-15-10) Both the Senate and House have now voted to adopt the conference report on major financial reform legislation (H.R. 4173), which means the legislation now heads to the White House where President Obama has indicated he will sign the measure into law next week. The final legislation includes important language advocated for by the Partnership and several other nonprofit organizations that would exempt all “activities relating to charitable contributions” from the jurisdiction of the newly-created Consumer Financial Protection Bureau.

(7-8-10) During the Partnership for Philanthropic Planning Leadership Assembly, June 10 and 11, in Indianapolis, PPP’s council leaders participated in robust and productive focus group discussions on the possibility of an affiliation between PPP and the Association of Fundraising Professionals. All of these comments are being considered by the PPP Board of Directors and other leaders who are participating in the continuing discussions with AFP. Both PPP and AFP continue to collect feedback about ways the two organizations might partner to bring added value to all of their constituents and advance philanthropy. To read more, click here.

JUNE 2010

(6-29-10) PPP is pleased to announce that the National Conference on Philanthropic Planning will be held October 13-15 at the Buena Vista Palace in Orlando, Florida. Click here for more information.

(6-28-10) After a series of contentious votes over the past couple weeks in which Democratic leaders failed to garner 60 votes for a motion to invoke cloture or otherwise set a limit on debate, Senate Majority Leader Harry Reid (D-NV) pulled House-passed "extenders" legislation (H.R. 4213) from the Senate floor. This legislation is the vehicle for a year-long retroactive extension of the IRA Charitable Rollover. While next steps remain unclear, Senator Reid has said the "extenders" package will remain intact and none of its provisions would migrate to other legislation.

(6-24-10) Democratic leaders in the Senate are currently working on a new scaled-down substitute amendment to H.R. 4213, House-passed "extenders" legislation, which is the vehicle for a provision that would retroactively extend the IRA Charitable Rollover through the end of 2010. In order to advance H.R. 4213 out of the Senate, Democrats need 60 Senators voting in favor and to date that number is still lacking. If the Senate is able to approve H.R. 4213, the legislation will then be sent back to the House once again for approval.

(6-17-10) The Partnership for Philanthropic Planning held its annual Leadership Assembly on June 10 and 11, 2010 in Indianapolis, IN. In addition to council leadership and training activities, the PPP Board of Directors presented its annual report to delegates representing planned giving councils nationwide. Council leaders were also asked to share their thoughts about a possible affiliation between PPP and the Association of Fundraising Professionals (AFP). Reports and materials presented during the Assembly will soon be posted to this website and available to all council leaders.

(6-17-10) The IRS Advisory Committee on Tax-Exempt and Government Entities has released a report containing recommendations on a number of issues such as executive compensation for charities, the IRS's determination letter program, and improvements to the voluntary closing agreement program for tax-exempt, tax credit, and direct-pay bonds.

(6-17-10) The number of Americans who volunteer grew last year at the fastest rate in six years, according to a new report by the Corporation for National and Community Service. The report says that 63.4 million adult Americans—nearly 27 percent of the population—volunteered to help charitable causes last year. That’s an increase from 2008 of roughly 1.6 million volunteers, the largest single-year jump since 2003.

(6-17-10) Giving USA announced that estimated charitable contributions in 2009 fell to $303.75 billion, down from 315.08 billion in 2008. This drop represents a fall of 3.6 percent in current dollars, but because the overall economy saw slight price deflation, the adjusted change in giving from 2008 to 2009 is actually a decline of 3.2 percent. The Giving USA figures calculate total charitable giving by more than 75 million households across the United States, more than 1 million companies, an estimated 120,000 estates, and about 77,000 foundations.

(6-16-10) Senate Finance Committee Chairman Max Baucus (D-MT) has now released a modified substitute amendment to H.R. 4213, House-passed "extenders" legislation. This substitute amendment, like the underlying bill itself, includes a provision that would retroactively extend the IRA Charitable Rollover through the end of 2010. Democratic leaders in the Senate must now secure 60 votes to waive budget points of order and invoke cloture on H.R. 4213 before moving to an up-or-down vote on the legislation. Even if the Senate is able to clear H.R. 4213, it will then have to go back to the House once again for approval.

(6-8-10) The Senate has begun consideration of a House-passed "extenders" bill (H.R. 4213) that includes an extension of the IRA Charitable Rollover. The Senate is likely to vote on a number of significant changes to the bill this week, which will ultimately require H.R. 4213 be sent back to the House once again for approval.

(6-02-10) The Joint Committee on Taxation has released a technical explanation (JCX-30-10) of the revenue provisions contained in the American Jobs and Closing Tax Loopholes Act of 2010.

(6-01-10) The House finally voted to approve an updated version of extenders legislation (H.R. 4213) that still includes a provision that would retroactively extend the IRA Charitable Rollover through the end of 2010. The Senate is now expected to consider the House-passed measure after lawmakers return from the Memorial Day recess on June 7. If the Senate makes any changes to H.R. 4213, which is increasingly likely, the legislation must be sent back to the House once again for approval.

(6-01-10) Individual charitable giving in 2009 amounted to $217.3 billion, a decline of $11.2 billion or 4.9 percent from the estimated $228.5 billion total in 2008, according to the latest report by researchers at the Center on Wealth and Philanthropy at Boston College This 5% decline is in addition to the 6 percent decline that the Center calculated for 2008. The full report will be published in the July/August 2010 issue of Advancing Philanthropy, published by the Association of Fundraising Professionals.

MAY 2010

(5-26-10) Representatives from AFP and PPP met on May 16 and 17 in Arlington, VA to discuss a possible model for an organizational affiliation. Volunteer leaders of both organizations participated in a robust and productive dialogue and agreed to continue the discussions in the future. No joint recommendations for board deliberation or consideration have yet been made, but both groups will continue to collect feedback about ways the two organizations could collaborate on educational and other programs. PPP council leaders will gather in Indianapolis on June 10 and 11 during the PPP Leadership Assembly, to hear an update on the affiliation conversation and to provide their thoughts on both a national affiliation and possible affiliation models in local communities. If you are a local council leader who would like to attend the assembly, please contact the PPP office directly at 317-269-6274 or info@pppnet.org.

(5-20-10) Chairmen of the House and Senate tax-writing committees have now released a summary of compromise "extenders" legislation that would retroactively extend the IRA Charitable Rollover through December 31, 2010. This new legislation, which will be offered as a substitute amendment to H.R. 4213, is expected to reach the House floor either May 25th or the 26th. If the House then approves this legislation, leaders in the Senate hope to secure enough votes for passage before lawmakers leave town for the week-long Memorial Day recess.

(5-20-10) Democratic leaders in the House and Senate are getting ever closer to advancing H.R. 4213, the Tax Extenders Act of 2009, and a vote in the House could come as early as Friday, May 21st. The legislation, which currently contains a provision that would retroactively extend the IRA Charitable Rollover through December 31, 2010, has been the subject to intense negotiations over the past few weeks, but key lawmakers now indicate an agreement is near. The Partnership continues to work in Washington to ensure the Rollover provision remains part of any final "extenders" legislation and is voted on prior to the Memorial Day recess.

(5-09-10) Members of the Philanthropic Planning Council of Nashville and the wider nonprofit community of middle Tennessee are joining the effort to clean up from recent flooding. Click here to assist in relief efforts. To learn about clean-up efforts at Gaylord Opryland, click here. To read about Opryland’s donation of perishable and refrigerated food to the flood relief efforts, click here.

(5-7-10) PPP and the Association of Fundraising Professionals (AFP) have begun discussions aimed at developing an affiliation agreement and forming a united organization dedicated to advancing ethical fundraising and philanthropic planning practice. To read the press release announcing this development, click here.

APRIL 2010

(4-30-10) The American Council on Gift Annuities has recommended a new schedule of maximum gift annuity rates effective July 1, 2010. The new schedule reflects slightly higher rates up through age 81, with all rates qualifying at a CFMR of 3.2% or higher.

(4-29-10) The American Bar Association Section of Taxation submitted comments on IRS proposed regulations regarding Type III supporting organizations. One of the 14 recommendations made in the comments was that the proposed 5% annual distribution requirement for a non-functionally integrated Type III SO be scaled back to 3-1/3%, or two-thirds of the minimum investment return, similar to the requirement for private operating foundations. The ABA Section of Taxation (Estate and Gift Tax Committee) is a member of Synergy Summit, which includes PPP and six other national organizations whose members partner in philanthropic planning.

(4-26-10) The Partnership for Philanthropic Planning delivered a letter to the leaders of the Senate Finance Committee and House Ways & Means Committee asking that they work quickly to reconcile the two versions of H.R. 4213, the Tax Extenders Act of 2009, and send final legislation to President Obama. The Senate and House have approved separate versions of this bill, which both include a provision that would retroactively extend the IRA Charitable Rollover through December 31, 2010. There are a number of significant differences between the Senate and House bills that need to be reconciled.

(4-09-10) The Senate and House have approved separate versions of H.R. 4213, the Tax Extenders Act of 2009, and both these bills include a provision that would retroactively extend the IRA Charitable Rollover through December 31, 2010. There are, however, a number of significant differences between the Senate and House bills that need to be reconciled, including how to offset the cost of the legislation. Senate and House leaders have indicated a desire to avoid a formal conference committee on H.R. 4213, and key tax writers have already begun meeting to try and work out the differences. The Partnership continues to urge Congressional leaders to send final “extenders” legislation to President Obama as soon as possible so that the IRA Charitable Rollover will once again become law.

(4-5-10) The 21st Annual ABA Real Property, Trust and Estate (RPTE) Law Annual Spring Symposia will be held May 6-7th at the Philadelphia Marriott Downtown. The program includes a number of sessions related to philanthropic planning, and all session provide CLE credit. As a benefit of PPP’s membership in the Synergy Summit (www.synergypro.org), our members receive a $50 discount on the registration fee for this program. To see the program brochure and register to attend, click here.

(4-08-10) PPP virtual seminars are a great resource for staff who are new to philanthropic planning. For more information about all the PPP Virtual Seminars and to register or purchase a CD, click here.

MARCH 2010

(3-25-10) The Nonprofit Finance Fund has released its 2010 State of the Sector Survey of nonprofits nationwide. The report follows up a 2009 survey to uncover the impact of the economic crisis on nonprofits. Among the findings - while 80% of nonprofits anticipate an increase in demand for services in 2010, only 18% expect to end 2010 above break-even and the majority—61%—have less than three months of cash available. More than half of respondents expect government and foundation revenue streams to decrease in 2010.

(3-19-10) The IRS has released its 2010 “dirty dozen” list of tax scams, which includes the abuse of charitable organizations and deductions. The IRS press release states that the "abuse includes arrangements to improperly shield income or assets from taxation and attempts by donors to maintain control over donated assets or income from donated property." The release also states that the IRS will continue to investigate "schemes involving the donation of non-cash assets."

(3-15-10) As part of the ongoing paperwork reduction process the IRS is requesting comments on a number of existing forms and Regulations, including: Form 8283 "Noncash Charitable Contributions", Form 8282 "Donee Information Return", and Form 706-QDT "Estate Tax Return for Qualified Domestic Trusts".

(3-15-10) Senate Banking Committee Chairman Chris Dodd (D-CT) released his draft financial reform legislation, which would create a Consumer Financial Protection Bureau to be housed at the Federal Reserve. The Partnership is pleased to report that this draft legislation excludes from the jurisdiction of this new entity all "activities relating to charitable contributions." This outright exclusion tracks language contained in H.R. 4173, financial reform legislation that was approved by the House last year. The Partnership for Philanthropic Planning, together with over 15 organizations, sent a letter to each member of the Senate Banking Committee urging lawmakers to exempt the work of fundraisers and charitable gift planners from any forthcoming legislation on consumer financial protection.

(3-10-10) The House approved H.R. 4783, which would allow taxpayers to take deductions on their 2009 tax returns for charitable contributions made through April 15, 2010 to help victims of the Chilean earthquake. The bill also extends until April 15th the period in which contributions for Haitian disaster relief can be made and deducted on 2009 returns. The Senate has not yet announced its plans for H.R. 4783.

(3-9-10) The Senate continues consideration of H.R.4213, the Tax Extenders Act of 2009, which includes a provision that would retroactively extend the IRA Charitable Rollover through December 31, 2010. A final vote on the legislation could take place on the Senate floor this week. The House approved its version of tax extenders legislation in December.

(3-8-10) A Chronicle of Philanthropy index index that aggregates changes in key economic indicators that affect charitable giving shows upward movement in today's economy compared with the second quarter of 2009.

(3-8-10) The Call for Presentations for this year’s National Conference on Philanthropic Planning closes at 5:00 p.m. Eastern time on Monday, March 15. PPP is seeking planners from all types of charitable organizations and all advisor professions to share best practices, new techniques and insights into donor motivations and characteristics. If you’ve found a way to make charitable giving more meaningful for donors and clients, you have the material for a great conference presentation. To see a checklist of information required to submit a proposal, click here. To access the Call for Presentations, click here.

(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

(2-22-10) The Partnership for Philanthropic Planning, together with over 15 organizations, sent a letter to each member of the Senate Banking Committee urging lawmakers to exempt the work of fundraisers and charitable gift planners from any forthcoming legislation creating a new Consumer Financial Protection Agency. The House approved legislation (H.R. 4173) last year creating such an agency, and the Partnership and coalition partners were successful in pushing for an outright exemption for activities relating to charitable giving.

(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.