Policy Update

Update on Charitable Package

5/09/2006

Source: Independent Sector (IS)

To: IS Legislative Advisory Committee and Policy Advocates

In case you haven’t already seen Diana’s message from earlier today with the latest on the progress of the charitable package, here it is below:

“We understand that Chairmen Grassley and Thomas have reached final agreement on the pending tax reconciliation bill (H.R. 4297) and that charitable giving incentives and reforms will not be included in this bill.

However, the charitable package is likely to be added to another bill in the midst of final consideration by House and Senate negotiators. This potential new vehicle for the charitable package, the pension reform bill, has already passed both chambers of Congress and is viewed as “must-do” legislation.

Unlike the tax reconciliation bill, the pension reform legislation can be subject to a filibuster, which would require 60 votes in the Senate to cut off debate. There is opportunity to amend the legislation in conference but not on the floor.

We understand that Mr. Thomas and Mr. Grassley have agreed in principle to a package of both charitable incentives and reforms, but details remain to be worked out. It is conceivable that Chairman Thomas may want to include new proposals.

We believe that Senator Grassley is now likely to be interested in adding some other provisions drawn from the Panel on the Nonprofit Sector's recommendations, including such critical elements as enhanced electronic filing requirements and funding for community education.

It appears that the White House also is paying closer attention to these matters and is encouraging some action on charitable measures.

IS has long believed that a comprehensive set of reforms identified by the Panel is the most effective way to improve governance and transparency. These recent developments may provide a window of opportunity to see a more complete package enacted. We will work closely with the Senate Finance Committee and House Ways and Means Committee as they shape the final legislation.

We encourage you to call your elected officials to voice your support for a constructive package and to ensure that any additions reflect the broad views of the sector as expressed through the Panel's recommendations.

As you know, in Washington the outlook can shift daily and it is possible that the vehicle for the charitable package may change. Our actions help determine the outcome; therefore we encourage you to take action. IS will keep you informed as new developments unfold.”