Senator John Thune (R-SD) and Senate Finance Committee Ranking Member Ron Wyden (D-OR) introduced today S. 2750 – the Charities Helping Americans Regularly Throughout the Year Act, or CHARITY Act – which includes three provisions strongly supported by the Alliance for Charitable Reform (ACR): a flat one-percent private foundation excise tax, an expansion of the IRA rollover to include distributions to donor-advised funds (DAFs), and a sense of the Senate urging Congress not to diminish the charitable deduction during comprehensive tax reform. These provisions, among others in the bill, will allow our nation’s 1.5 million charitable organizations to continue serving those in need in our communities.
“Last year, the charitable sector helped to pass a permanent extension of the IRA charitable rollover. The bill introduced today builds on that victory,” said Sandra Swirski, executive director of ACR.
The current IRA charitable rollover excludes gifts to DAFs, placing local communities at a disadvantage by cutting off a potentially powerful source of funding for the charities that would ultimately benefit from DAF grant distributions. S. 2750 allows DAFs to be an eligible vehicle for the IRA charitable rollover, promoting philanthropic freedom and ultimately leading to an increase in the number of donations to local charities.
The CHARITY Act also includes a provision to streamline the private foundation excise tax from its current two-tiered form into a flat rate of one percent, an ACR priority for several years.
“Republicans and Democrats in the House of Representatives have come together to pass a flat one-percent private foundation excise tax in the America Gives More Act in both 2014 and 2015. This is a policy that has strong bipartisan support and allows private foundations to focus their resources on grantmaking,” said Joanne Florino, senior vice president for public policy at The Philanthropy Roundtable.
The bill also contains a non-binding sense of the Senate stating that “charitable giving should be a goal of tax reform; and Congress should ensure that the value and scope of the deduction for charitable contributions is not diminished during a comprehensive rewrite of the tax code.” Sens. Thune and Wyden offered similar sentiment to preserve the charitable deduction in a letter they co-authored in 2013, which was signed by 33 senators.
The ACR Summit for Leaders is the kick-off event for Foundations on the Hill on Tuesday, April 12, which is just around the corner! Make sure you visit the ACR Summit page on our website to see the updated programming.
Registration for the Summit is now closed but there are still ways for you to follow the event should you not be able to attend. We will be live-blogging the Summit – with the exception of the off-the-record congressional panel – on the ACR blog. You will also be able to follow live updates on Twitter @ACReform or by following #ACRSummit.
- National: IRA Rollover, Excise Tax Included in CHARITY Act
- National: Bill Would Expand Incentives for Gifts to Donor-Advised Funds
- National: Bloomberg, Others Give Hopkins $125 Million for Cancer Research that Helped Jimmy Carter
- National: 12 Steps to Building a Culture of Philanthropy
- National: Small Foundations Significantly Boost Giving, Study Says
- Opinion: How Philanthropists Can Slow the Slide of Political Rhetoric
- Opinion: Grant Makers Need a New Approach to Reversing Inequities in America’s Cities
Please feel free to email us at firstname.lastname@example.org if you have any questions, stories or topics you would like us to include in our newsletter.
Looking for ARCHIVES of this newsletter? Click here.