WASHINGTON, D.C.— Rep. George Holding (R-NC), along with Reps. Erik Paulsen (R-MN), Pat Tiberi (R-OH) and Devin Nunes (R-CA), Mike Kelly (R-PA), and Gene Green (D-TX) introduced H.R. 4907, the Grow Philanthropy Act, Tuesday evening. The bill would allow distributions to donor-advised funds (DAFs) in the IRA charitable rollover, a provision strongly supported by the Alliance for Charitable Reform (ACR).
“Donor-advised funds are an effective vehicle for growing philanthropy in our communities. Allowing donors to distribute money from their IRAs to DAFs will lead to more giving to local charities,” 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 their charities. H.R. 4907 removes this exclusion.
ACR also supports the Private Foundation Excise Tax Simplification Act, H.R. 640, sponsored by Reps. Erik Paulsen (R-MN) and Danny Davis (D-IL), which would streamline the private foundation excise tax from its current two-tiered form into a flat rate of one percent.
Similar provisions were included in S. 2750 – the Charities Helping Americans Regularly Throughout the Year Act, or CHARITY Act – which was introduced in the Senate last week by Senators Thune (R-SD) and Wyden (D-OR).
“With bipartisan support, the House of Representatives twice passed a flat one-percent private foundation excise tax as part of the America Gives More Act in both 2014 and 2015. This policy allows private foundations to focus on their grantmaking. We are grateful for Rep. Paulsen’s continued support of this provision, and look forward to working toward passing this legislation – as well as the expanded IRA rollover bill – in both chambers this year,” said Joanne Florino, senior vice president for public policy at The Philanthropy Roundtable.
ACR is joining with hundreds of colleagues in the sector from across the country in seeking cosponsors for both of these bills – as well as the legislation introduced in the Senate – on Capitol Hill this week as part of Foundations on the Hill. Foundations on the Hill kicked off Tuesday with the annual ACR Summit for Leaders.