Policy Update

September 2005 Estate Tax, Vehicle Donation, Budget, Advocacy Rules

9/27/2005

Hearing Held to Highlight the Work of Charities; Importance of the Estate Tax
Updated: September 13, 2005
The Subcommittee on Social Security and Family Policy, chaired by Senator Santorum, held a hearing entitled, “Charities on the Frontline: How the Nonprofit Sector Meets the Needs of America’s Communities” on September 13. During the hearing, Sen. Santorum expressed appreciation for the good work of nonprofits across the country. Nonprofit witnesses provided examples of their work and articulated their support of the CARE Act.

Tax experts provided recommendations on specific provisions to support charitable giving, including an acknowledgement the repeal of the estate tax would lead to a decrease in charitable giving that would not be recovered by CARE Act incentives. To view the Senate Finance Committee page on the hearing, including written testimony, click here.

Senate Postpones Estate Tax and Budget Hearings
Updated: September 9, 2005
In light of the Senate’s focus on the Katrina aftermath and the national focus on the devastation, the Senate postponed its September 6 vote concerning the repeal of the estate tax. The Senate has also postponed reconciliation, which is key to implementing budget cuts outlined in the 2006 budget resolution. There have been calls from Democrats and some moderate Republicans to hold off on budget cuts until after the costs of recovering from Katrina are better understood.

FEC Proposes Changes to Nonprofit Advocacy Rules, Seeks Comments
Updated: September 9, 2005
The Federal Elections Commission (FEC) is considering changes that could affect the advocacy voice of charities across the country. Currently charities are strictly prohibited from electioneering, and are thus not covered by campaign finance law. However, the FEC is reviewing current rules regarding communications made 30 days prior to primary elections and 60 days before general elections, and weighing whether charities should be limited in mentioning a candidate for federal office during those periods.

IRS Releases Vehicle Donation Reporting Form
Updated: September 9, 2005
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 website.