TALKINGPOINTS
[Insertlocalexample ofcommunityphilanthropyatwork – a program orserviceprovided withthe support of charitable giving.]
[Insertabriefdescriptionof what the program doestocreate opportunitiesand transformlives, whoand howmany people itserves, and the results ithas achieved.]
EMPOWERINGCOMMUNITIES.TOGETHER.
Philanthropicleadersfromacross the countryaregatheringin Washington,D.C. during PhilanthropyWeek in Washingtonto meet with our Congressionaldelegations.Fordecades, ourleadershavedeployedacrossCapitol Hill for“Foundations onthe Hill,” the centerpieceevent during PhilanthropyWeek inWashington.
Philanthropycreates thriving communities.Philanthropy ishelping yourconstituentseverydaybycreatingjobs,spurringinnovation,supportingthe vulnerable, and empoweringyourconstituentstoimprove their lives.
Philanthropy has a unique abilitytoinnovate,incubate anddeliverresults– sometimesinways government andfor-profitentitiescannot.Importantly,philanthropiccollaboration withbothgovernmentandbusiness leveragesourresourcestobenefitcommunities around the world.
CREATING+SPURRING+SUPPORTING+EMPOWERING
TALKINGPOINTS
WE ASK YOUTOSUPPORT H.R. 644,THE AMERICA GIVESMORE ACT OF 2015
This bill, which waspassedby the House onFebruary 12th, wouldmake the IRA charitablerollover and the othercharitable tax extenderspermanentlaw.
TAXPOLICY
Our organizationsarecreated under the tax code.
As Congresscontemplates both individual changesto the codeand comprehensive tax reform,wepayattention.We hopethatyou will consider the implications of thesechanges onphilanthropic and charitable organizations, and in turn, yourcommunities.
Changesto the code can enhance and expand the workwedo.Or,theycanconstrain or diminish our abilityto do our work, andconsequently, hurt the communities weserve.
WerecognizethatCongressfacestough decisions regardingthe nation’sfiscal problems, butthere are better solutionsthansuppressing the ability of philanthropyto do its criticalwork.
Weareyourresourcetounderstandtheseimplications.
TAXREFORMCONSIDERATIONS
As the HouseWays and MeansCommittee and SenateFinanceCommitteepreparefor tax reform with research and outreach,members of Congresshavelookedatseveral other provisionsaffectingcharitable organizations inthetaxcode,suchas:
•supporting organizations
•unrelatedbusiness income
•executivecompensation, and much more.
Many of thesehave come up during the extensiveresearch andoutreachprocess the HouseWays and MeansCommittee andSenateFinanceCommitteecontinuetoundertaketopreparefortax reform.
Beforeyou consider changes,pleaseseek input fromphilanthropicorganizations and charitable institutions tounderstand the consequences – both positive and negative – thatanychangeswouldhave on yourcommunity.
Wealso ask thatyousee our organizations, as well as the Councilon Foundations and [insert name of regionalassociation], asa resource on issuesthat impact philanthropy.
TALKINGPOINTS
WE ASK YOUTOUPHOLD CURRENT LAWREGULATINGDAFS SO THATCOMMUNITIES CAN CONTINUE TO
BENEFIT FROM THE GENEROSITY OFLOCAL DONORS.
DONORADVISEDFUNDS
Donor advised funds are one of manytoolsthatcommunityfoundationsusetoengagedonors and connect them with thecausestheycare about in their communities.Through donoradvisedfunds,communityfoundationsincrease charitable givingand build accesstolong-termphilanthropicresources in ourcommunities,allowingassetsto be usedtoaddressimmediateneeds or support futuredevelopment.
Foundations and organizationslike the Council on Foundationsand[insert regionalassociation]areeducatingmembers ofCongressand congressional staffonthe value ofdonor advisedfunds (DAFs) as unique philanthropictools.
DAFS are flexible, allowing community foundations to quicklyrespondtolocalneeds.DAFshave been usedto supporteverythingfromemergency response efforts tolong-termcommunityeconomicdevelopmentefforts.
DAFsensure funds areavailable during hardtimes, much like acommunitysavingsaccount.
Together,DAFs and communityfoundationsare bringing localsolutionsto the causes and issuesthatmatter most.
DespitethebenefitsDAFsbringtocommunities,proposals havebeendiscussedinCongressthatwouldchallengethefundamentaland long-standing value of endowedphilanthropy.
One misguided proposalwouldrequire a DAFtoexhaust its fundswithin five years or pay anannual20 percent excise tax penaltyon remainingmoney.
Shortsightedpoliciescouldsignificantly diminish useofthefastestgrowing giving tool,reduce charitable giving among adiversegroup of donors, and threaten communities’ abilitytoquickly respondtolocalneeds.
TALKINGPOINTS
WE ASK YOUTOSUPPORT H.R. 644,THE AMERICA GIVESMORE ACT OF 2015
This bill, which waspassedby the House onFebruary 12th, wouldsimplify the excise tax toaflat rate of1%.
PRIVATEFOUNDATIONEXCISETAX
Formore than a decade,we’ve been asking Congresstosimplifythe privatefoundationexcise tax to a single rate.
The currentexcise tax is extremelycomplicated and requiresextensive time and resourcestocalculate.It has become a realmanagementchallengebecauseitscomplex,two-tierstructureand the inherentuncertainties in preciselycalculating netinvestment income byyear’s end.
Consequently, the ratestructure actually serves as a disincentiveforincreasinggrantmaking in a calendaryear – which isparticularly devastating when late-yearemergencies or disastersoccur.
A higher grantpayout this yeartoassistfarmersimpactedbydrought in California,forexample, will make it much morechallenging for the foundationtoqualifyfor the lower tax rateduring the next 5 years.
A single ratefor all privatefoundationswouldgreatlysimplifycompliance,improveefficiencies,andremovedisincentives.Aflatrate of 1% would certainly be simple toadminister.
Weareopen toconsidering alternative rates,butwould finditdifficulttosupportarate thatisusedprimarilyasarevenue-raising mechanism.
ThePresidenthasincludedasingle-ratesimplificationof1.35%in past Budgets, including the recently-releasedFiscalYear2016Budget.
TALKINGPOINTS
WE ASK YOUTOSUPPORT H.R. 644,THE AMERICA GIVESMORE ACT OF 2015
This bill, which waspassedby the House onFebruary 12th, wouldmake the IRA charitablerollover and the othercharitable tax extenderspermanentlaw.
IRACHARITABLEROLLOVERAND“TAXEXTENDERS”
We ask thatyoumake the IRA charitable rolloverpermanentlaw.
Since its enactment in the PensionProtectionAct of 2006,the IRA rolloverprovision has provento be very popular withtaxpayersandbeneficialtocharities.
The temporaryrenewals of theseincentivesmake planningdifficultfordonorsandcreateuncertaintythatharmsthecountry’s charitable sector.
For each daythatgoesby without an incentive in place, many ofthe gifts the incentiveswereintendedtopromote will simply nottake place.
Permanencewilloffer the certaintythat both donors andnonprofits need toplan forcharitablegiftsin advance.
Wewouldalsoliketosee the IRA Rolloverexpandedtoallowindividuals to channel their mandatory distributions to othertypes of philanthropicvehicles.Permanence of the currentprovision is on the table now, and we fully support it.During thetax reformdebates,forexample,we ask youto support additionalexpansion.
TALKINGPOINTS
WE ASK YOUTOPRESERVE THEFULL VALUE OFTHE CURRENT DEDUCTION INCURRENT LAW.
CHARITABLEDEDUCTION
Weareheretotellyou about the power and positiveincentiveof the charitable deduction, and its positive impact in ourcommunities.
The bottom line is this: Wewanttoassurethatimportantcharitable work in every corner of our countrycontinues and thatyourconstituents will continueto be assistedby this work. Thecharitable deduction is criticallyimportanttoassurethattheseorganizationscontinuetothrive.
Thecharitabledeductionisauniquetaxbenefit.Itencouragesindividuals togiveaway a portion of their income without gettinganythingback.Thismakesitdifferentfromothertaxbenefits,which encourage individuals to spend or saveforthemselves.
In other words, it is the ONLY deduction thatexistsfor publicbenefitratherthantheindividualtaxpayer.
Changesto charitable giving incentiveswouldcausedonationstodecline bybillionsofdollars eachyear,stiflingphilanthropy’seffectduringatimewhencommunities are stillstruggling toovercome the recession.
TALKINGPOINTS
Please consider ourfoundations, ourregionalassociation,and the Council onFoundations as yourresourceforinformationon philanthropicorganizations, assoundingboardsforproposalsthat couldimpact us, and as apartner back home.
OTHERASKS
Weinviteyou [your district/state team] to visit us and tolearn moreabout the importantprogramswesupport inyour communities everyday,such as [insert example].
Wouldyou join the PhilanthropyCaucus?The Caucus aimstoeducateMembers of Congress about the vital role of Americanphilanthropy. The Caucus will be hosting a series of eventsthroughout2015.
HereistheDearColleagueletterfromthechairs[present staff/member with a copy of the letter, which the Council willprovideyou with].
Please join us at the House PhilanthropyCaucusLunchBriefingandSenatePhilanthropyCaucusReception.
Provide them with date, time, location,title/topic.[Hard copies ofinvitations willbe available to handout to Members andstaff.]
Please consider the impact of tax provisions on our work.Whether simplifying the privatefoundationexcise tax, extendingand expanding the IRA charitable rollover, or numerous othertax provisions in the Code,theseareveryimportantto us and
westronglyencourageyoursupportinfine-tuningthetaxcode to both support and strengthenphilanthropic giving andorganizationslikeours.