Policy Update

Federal General Policy Updates

9/29/2005

Federal Nonprofit Policy Updates
as of September 29, 2005
Source: National Council of Nonprofit Assocations

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CARE Act Reintroduced in House and Senate
Senators Santorum (R-PA) and Lieberman (D-CT) reintroduced the CARE Act in the Senate and Senator Blunt (R-MO) introduced the CARE Act in the House on September 28, 2005. Both bills contain incentives to promote charitable giving, but the House bill is more limited in scope. More information will be available soon.  

First Katrina Relief Bill Passes; Two More on the Way
The House and Senate passed a Katrina relief bill after the Senate removed many of the charitable incentives it proposed in earlier versions of the bill. The House and Senate are currently working on two additional bills: one will provide Medicaid coverage to Katrina victims, while the other is expected to provide incentives for businesses to return to the affected regions.

Hearing on Rebuilding Communities Held Sept. 28
The Senate Finance Committee held a hearing on "Hurricane Katrina: Community Rebuilding Needs and Effectiveness of Past Proposals." Witnesses included Governors from Louisiana, Mississippi, and Alabama, along with representatives from New York City's post9/11 team, the Joint Committee on taxation, and the nonprofit sector.

Senate Postpones Estate Tax and Budget Hearings
The Senate postponed a vote concerning the repeal of the estate tax and hearings on budget cuts outlined in the 2006 budget resolution in light of the devastation from Hurricane Katrina. There have been calls from Democrats and some moderate Republicans to hold off on tax and budget cuts in light of Hurricane Katrina.

FEC Proposes Changes to Nonprofit Advocacy Rules, Seeks Comments
The Federal Elections Commission (FEC) is considering changes that could affect the ability of charities to engage in issue advocacy prior to elections. The FEC has requested public comment on the matter until September 30.

Hearing Held to Highlight the Work of Charities
The Subcommittee on Social Security and Family Policy, chaired by Senator Santorum (R-PA), held a hearing entitled, "Charities on the Frontline: How the Nonprofit Sector Meets the Needs of America's Communities" on September 13. Nonprofit witnesses articulated their support of the CARE Act and tax experts provided recommendations to support charitable giving. Full summary available.

IRS Introduces Leave Donation Program for Hurricane Relief
Individuals looking to help with hurricane relief efforts can donate unused leave, in exchange for a cash contribution from their employer to a qualified organization providing help to Hurricane Katrina victims. For further information, see the Leave Donation Program section on the IRS Hurricane Katrina Relief website.

USPS Closes Zip Codes Affected by Katrina
The United States Postal Service has suspended service to certain zip codes in Louisiana, Mississippi, and Alabama affected by Hurricane Katrina.

IRS Releases Vehicle Donation Reporting Form
The Internal Revenue Service (IRS) has released a new form (Form 1098-C) for charities to use when reporting contributions of qualified vehicles. For more information on the new rules regarding vehicle donations, visit the IRS Web site.