Q&A with Brent Christopher, President & CEO, Communities Foundation of Texas, and Board Member, Philanthropy Southwest

What is the America Gives More Act?

The America Gives More Act (H.R. 4719), passed by the U.S. House last June, was intended to boost charitable giving, which has been stuck at about 2% of GDP for decades. To incentivize additional giving, the Act proposed to make permanent the IRA Charitable Rollover, a simplified and lower (1%) excise tax rate for private foundations, allowing charitable gifts made up to April 15 to apply toward deductions for the previous tax year, and allowing tax deductions for charitable land conservation easements and contributions of fresh food.

What is the effect of last week's Congressional action?

The U.S. Senate never voted on the America Gives More Act.  But, on Wednesday, 12/3/14, the U.S. House voted in favor of a different bill, the Tax Increase Prevention Act of 2014, (H.R. 5571) to simply extend several expired tax provisions from 2013.  The Senate also is expected to pass H.R. 5571, which would extend the IRA Charitable Rollover and other tax deductions through the end of 2014. 

As of Monday, December 8th, leaders in the House and Senate are now considering passing a separate bill to make the following charitable provisions permanent: theIRA Charitable Rollover; the deduction for gifts food inventory; and the deduction for conservation easement contributions. Action on this potential legislation is anticipated early during the week of December 8th.
 

What's the silver lining?

While the lack of Congressional action on the America Gives More Act means it has come to an end, foundations and nonprofits should consider this a significant stepping stone to future action. The practical reality is that passing legislation is complicated, particularly in this political climate. It's important to keep in mind that our efforts to build relationships with policy leaders and their staffs, and to provide education about the impact of charitable giving, will pay off in the long run. With patience and persistence it's possible that helpful tax legislation could pass in 2015 or even that comprehensive tax reform can pass in the next few years. The strong relationship-building and educational efforts in 2014 have generated a lot of conversation and raised awareness on the critical importance of philanthropy. We need to build on this and leverage the opportunities ahead.

"There are a lot of reasons foundations give for not engaging in advocacy, from limited resources, to fear of the law, and wanting to stay away from controversy. I see these all as symptoms of the same issue - a lack of knowledge," said Andrew Schulz, general counsel, Arabella Advisors. "If you want to see far-reaching, systemic change you need to open up your mind to what you could be doing within the broad realm of advocacy."

Schulz delivered a persuasive keynote address during Philanthropy Southwest's 2014 Annual Conference, held in Phoenix, Arizona. His comments served as bookends to a video featuring staff in foundations that have overcome uneasiness about advocacy and are using it as an effective tool to leverage broad scale change. Together, they offered their views on why it is so important for funders to support advocacy efforts and to be advocates themselves, along with advice on how to get started with advocacy and reassurances that advocacy is not only the right path but a relatively easily achievable course for many foundations.

 Read the full article and see video clips here.