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American Recovery and Reinvestment Act of 2009 Passes House and Senate
On February 10, the Senate passed its version of the economic stimulus package. The House passed its version of the American Recovery and Reinvestment Act of 2009 by a 244-188 vote on January 28. The package did not receive any Republican support. The Senate approved its bill most along party lines, by a vote of 61 to 37, with three Republicans joining 56 Democrats and two independents in favor.  Congressional leaders said they would immediately begin to work out the differences between the Senate measure and an $820 billion version passed by the House.  Leaders are hopeful that the legislation will be finalized so that it can be sent to Mr. Obama for his signature by February 16.

After the stimulus bill is signed into law, Congress most likely will begin pursuing action on the estate tax which is set to expire (or sunset) at the end of 2009.  Debate on estate tax legislation could open the door for lawmakers to raise other issues including private foundations and associated tax benefits.
Government Leaders Relevant to Philanthropic Sector
The Democrats hold the majority in the 111th Congress with 257 to 178 in the House and 58 to 41 in the Senate (one Minnesota Senate seat is vacant).  Leadership of the key committees that are relevant to the philanthropic sector will remain the same, with Representative Charles Rangel (D-NY) as chair of the House Ways and Means Committee and Senator Max Baucus (D-MT) as chair of the Senate Finance Committee. Representative Dave Camp (R-MI) was selected as the new ranking member of the House Ways and Means Committee and Senator Charles Grassley (R-IA) continues as ranking member of the Senate Finance Committee. The House Ways and Means Committee added 11 new members (5 Democrats and 6 Republicans) and the Senate Finance Committee added 5 new members (3 Democrats and 2 Republicans). Representative Paul D. Ryan (R-WI) from Wisconsin's 1st District serves on the House Ways and Means Committee. Representative David Obey (D-WI) from Wisconsin's 7th District is the Chairman of the House Appropriations Committee and was the lead sponsor of the House version of the stimulus bill.
 
Valerie Jarrett, White House Senior Advisor. Jarrett, whose Intergovernmental Relations and Public Liaison office will serve as the foundation community's "gateway" to the federal government, says she is a "true friend and partner" of the philanthropic sector. Read the Council on Foundation's interview.

Rep. John Lewis, Democrat of Georgia, will serve as the new co-chair of the Congressional Philanthropy Caucus. The Council on Foundations, which helped to set up the caucus in 2007, as a way to raise awareness in Congress of issues and legislation affecting foundations. Rep. Lewis will continue as chairman of the Oversight Subcommittee of the House Ways and Means Committee-the panel that oversees the tax laws that govern foundations charities. Read the full article.

Senator Charles Grassley, ranking member of the Senate Finance Committee, recently urged foundations to "step up and help" as the struggling nonprofit sector rallies for part of the economic stimulus. Read the full article.  In response to a recent survey showing the decline of college endowments, Senator Grassley encouraged more spending on student aid, saying "If an endowment is a rainy day fund, it's pouring." Read the full statement [pdf].
The White House and Philanthropy
Several White House possible offices and personnel working on policies affecting the nonprofit and philanthropic sectors are emerging, including new offices on Social Innovation; Neighborhood Partnerships; and, Urban Affairs Policy.
 
The Chronicle of Philanthropy reports on the Obama administration's crafting of plans to create a Social Innovation Office promoting successful approaches to societal problems and focusing on national service, volunteerism, and help for innovative nonprofit groups.  Read the Chronicle of Philanthropy article (chronicle subscription required).
 
The White House has expanded its Office of Faith-Based Initiatives to include "Neighborhood Partnerships".   The New York Times reports, the office will help nonprofits navigate the federal grants process but will also, "look for other ways to involve those groups in working on pressing social problems."  Read the NY Times article.
IRS Annual Report and Fiscal Year 2009 Work Plan
Exempt Organizations has issued an Annual Report and its Fiscal Year 2009 Work Plan. The document describes EO's accomplishments and the initiatives and projects to be undertaken in the coming year. 

Organizations most likely reviewed by the IRS include: Colleges and Universities; Political Activities; Hospitals; Non-filers; and Community Foundations - as a result of more than 3,000 questionnaires sent to organizations thought to be community foundations, the IRS has concluded that a follow-up project to classify them better is needed in 2009.  Read the full report and work plan [pdf].
Resources for Evaluating Community Organizing
Looking for information on evaluating community organizing?  Check out Resources for Evaluating Community Organizing (RECO), a living library of resources for evaluating community organizing.  To help raise the profile of community organizing as a critically important change strategy, The Alliance for Justice developed Resources for Evaluating Community Organizing (RECO).  RECO includes detailed summaries of each resource so users can find the resources that are most useful for their evaluation needs.  Read more about the resources.
Foundations on the Hill March 24-25, 2009
Foundations on the Hill (FOTH) is a two-day legislative and public policy event in Washington, DC for foundation staff members and philanthropic leaders. FOTH is a unique opportunity for grantmakers to demonstrate the power of philanthropy and its impact on American society, particularly in these turbulent economic times.
 
It is very important that the new Congress hear from foundations and grantmaking organizations about the initiatives and projects in which the sector is engaged to help communities deal with the struggling economy.  Your participation in FOTH will help to
  • inform and educate Congress about philanthropy
  • create visibility for foundations on Capitol Hill
  • advocate on legislative issues affecting foundations and philanthropy
  • encourage Congress to view foundations as resources on key public policy issues

This year, FOTH will take place on Tuesday, March 24 and Wednesday, March 25. During the event, participants will receive a legislative briefing on policies relating to the philanthropic sector, hear from a senior representative in the Obama administration, and participate in meetings with lawmakers on Capitol Hill.

 To get updated issue papers and more information about the event, visit the Foundations on the Hill website.  If you are interested in participating in Foundations on the Hill (FOTH), contact DFW's Rosemary Lillich at (414) 270-1978 or rlillich@dfwonline.org

 

Sincerely,
 
Rosemary Lillich                                                              
Director of Programming and Special Initiatives                
Donors Forum of Wisconsin        
 
 These articles provide information of a general nature, and none of the information is intended as legal advice relative to specific matters. You should consult with an attorney about your particular circumstances before acting on any of this information.
 
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