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Federal Legislation Update 
  • Public Good IRA Rollover Act of 2009

On March 2, Representatives Earl Pomeroy (D-ND) and Wally Herger (R-CA) introduced the Public Good IRA Rollover Act of 2009 in the House (H.R. 1250) and Senators Byron Dorgan (D-ND) and Olympia Snowe (R-ME) introduced a companion IRA rollover bill in the Senate, S. 864 on April 22.

The Public Good IRA Rollover Act would allow gifts made to donor-advised funds, supporting organizations, and private foundations to qualify for the IRA charitable rollover and would also lift the $100,000 cap on distributions and allow planned gifts beginning at age 59 1/2.  The IRA charitable rollover allows distributions to donor-advised funds to qualify for the incentive. 
 
Contact Wisconsin senators and representatives to urge them to support the Public Good IRA Rollover Act of 2009.  Find your federal representatives by clicking here. To view template letters which you may edit and send directly to your lawmaker's Washington, D.C. office, visit the Council on Foundation's Policy Action Center at www.cof.org/policy.  The more bill co-sponsors - particularly targeting House Ways and Means Committees Members Ron Kind (D-WI) and Paul Ryan (R-WI) - the better the chance that a full IRVA charitable rollover will be enacted.

  • Estate Tax Bill Introduced by Representative McDermott

On April 22, Representative Jim McDermott (D-WA) introduced the "Sensible Estate Tax Act of 2009" (H.R.2023), legislation that would strengthen the tax beyond the current 2009 levels and beyond President Obama's proposal. Read more.

  •  President Signs Edward M. Kennedy Serve America Act

President Obama signed the Edward M. Kennedy Serve America Act into law on April 21. This legislation will improve and expand national and community service programs and strengthen the infrastructure for volunteerism within the nonprofit community.  Read more.

The Impact of Obama's First 100 Days on Philanthropy
Arabella Advisors hosted a teleconference several leading authorities on philanthropy including Steve Gunderson, President and CEO, Council on Foundations;  Tim Walter, CEO, Association of Small Foundations;  Leslie Crutchfield, Coauthor of Forces for Good and Senior Advisor, Arabella Advisors to provide up-to-the-minute news on the latest ideas coming from the White House and offer ideas for how philanthropists could most effectively respond.  A summary of the highlights from the call are below.  To download a recording of the teleconference, click here.
  • Proposed changes to the tax code
    President Obama has proposed limiting to 28 percent the income-tax break couples earning more than $250,000 (or individuals earning more than $200,000) can get for each dollar of itemized deductions, including charitable donations, starting in 2011.  People in the highest tax brackets can currently take deductions of 33 percent or 35 percent.  The money raised by the proposed change would be used to help finance a $318-billion "down payment" on a plan to revamp the country's health-care system by bringing down costs and extending insurance to more people.  Many members of Congress as well as infrastructure social sector groups including COF, ASF and IS have criticized the plan, saying it would dampen donations at a time when charities are suffering from the economic downturn.
  • Philanthropy and the Administration
    The Obama administration is unique in their personal experience with philanthropy and understanding of how it works.  The administration actively wants to partner with philanthropy to address major social problems including through the White House Office of Public Liaison and Governmental Affairs.  Details are still forthcoming regarding leadership and structure of the soon-to-be-created White House Office on Social Innovation; however, the Office of Public Liaison remains a point of connection between the Obama Administration and philanthropy. There are calls for foundations to partner with the government and initiatives in the President's priority areas of education, energy and health.  Climate change and universal health care/ restructuring health care are the domestic priority areas.       
Philanthropy Collaborating with Government
The Donors Forum of Wisconsin's regional association colleague Northern California Grantmakers has produced timely information for grantmakers interested in working with government.  
  • A Bold New Era: Is Philanthropy Ready? is a reference of organizations, resources and articles to further inspire the philanthropic community and inform the sector about ways in which to position itself for collaboration with government.  To access this guide, click here.  
  • Close advisor to President Obama's administration is Christopher Edley, Jr., Dean and Professor of Law at University of California Berkeley Law School gave the keynote address at NCG's 2009 Annual Meeting on ways philanthropy can engage with the Obama Administration.  Listen to the keynote by clicking here.

IRS Releases Strategic Plan 2009-2013

The Internal Revenue Service has released an updated plan for the next several years that pledges a continuation of "focused oversight of the tax-exempt sector." 

"More than $15-trillion in assets are currently controlled by tax-exempt organizations or held in tax-exempt retirement programs and financial instruments," the IRS said in its Strategic Plan 2009-2013. "The massive size of this sector requires us to provide more careful oversight and advisory support than ever before."  The IRS listed three specific approaches it plans to take:

  • "Provide outreach and guidance to ensure widespread adherence to the requirements for tax-exempt status."
  • "Proactively address misuse of tax-exempt organizations and/or tax-exempt status."
  • "Maintain focus on universities, hospitals, and other major segments of the tax-exempt community."

Demystifying UPMIFA: Legal and Accounting Issues Associated with UPMIFA
On Thursday, May 7, 2009 from 10:00 - 11:30 a.m. DFW is hosting a webinar on the Uniform Management of Institutional Funds Act (UMIFA) which guides charities on the management and investment of funds, provides rules on spending from endowment funds, and permits the release of restrictions on the use and management of charitable funds. This webinar is designed to clarify what this change means and how it will impact grantmaking for community and private foundations.  Elaine Waterhouse Wilson, Partner in the Tax-Exempt Organizations Group at Quarles & Brady, LLP and Andy Holman, CPA Partner - Ritz Holman LLP will highlight:
  • What is UPMIFA and how does if differ from UMIFA (the old act)?
  • What changes does it require within your organization?
  • What are the accounting and reporting requirements under UPMIFA?

For more information and to register, click here.

 

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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