Legislative Alert: Charity Reform
Posted by Aaron Reddin | Posted in Christianity, Outreach, Prevention | Posted on 30-09-2009
Tagged Under : Government, Homeless, Little Rock, Management, Ministry, NPO's, Outreach, Poverty
Decisions that could decrease charitable giving in the United States and increase IRS reporting requirements for all tax-exempt organizations are being made in the U.S. Senate this week. Please take a few minutes to read this short summary and make your voice heard before government leaders make important decisions.
Charity Reform
The Senate Finance Committee is currently considering comprehensive health-care reform legislation, titled America’s Healthy Future Act of 2009. Senators Rockefeller (W.Va.), Carper (Del.), Kerry (Mass.), Schumer (N.Y.), and Menendez (N.J.) have proposed capping itemized deductions at 35 percent as an offset to pay for their health-care programs.
This would decrease the amount of charitable giving high-income taxpayers could deduct once the Bush-era tax cuts expired in 2011. And, for the first time, it would decouple itemized deduction caps from the tax rate. The result will very likely be fewer and smaller donations for America’s charitable organizations, and that’s no way to pay for health-care reform—or any other government program.
In addition, Senator Grassley (Iowa) is proposing amendments that:
- would require tax-exempt organizations to report additional governance, management, and potential conflict of interest information on the annual Form 990, in addition to new governance reporting requirements established in 2008, and
- would make it more difficult for tax-exempt organizations to justify compensation for officers and directors.
Grassley’s proposals are nearly identical to the ones AGRM and rescue missions opposed in 2005.
Act Now
Please take a moment this week to call your U.S. senator’s office and let him or her know that you oppose any health-care reform legislation that:
- caps itemized deductions for charitable giving, or
- burdens rescue missions with more IRS reporting requirements.
Let the person answering the phone know that you are a constituent and ask to speak to the legislative assistant (LA) handling health-care issues or the senator’s legislative director (LD). If the LA and LD are not available, leave one of them a personal voice mail. Explain how the potential changes would negatively affect your rescue mission, and leave your name and phone number for a call back.
Let the staff know how the economic downturn and drop in giving has affected your mission’s work and the people you serve, and the real cost of more IRS reporting requirements. Congress should be making it easier for taxpayers to make charitable donations and lifting the IRS reporting burden on charities, not making it more challenging for rescue missions to survive while they help the people and families struggling most during this economic downturn.
To find your senator’s office number in Washington, D.C., go to www.senate.gov and use the “Find Your Senators” drop-down menu in the top right corner of the screen. You should also call the offices of senators on the Senate Finance Committee (especially if you are one of their constituents), since they’re currently making the decisions to change the itemized deduction cap and IRS reporting requirements. Go to finance.senate.gov/sitepages/committee.htm and call each senator’s office.
Finally, I encourage you to go online to download two helpful documents. The first is a copy of a letter to Finance Committee Chairman Max Baucus(Mont.) encouraging him to oppose any caps on itemized deductions during consideration of health-care reform legislation. AGRM President John Ashmen and a coalition of 16 other national nonprofits and association leaders signed the letter.
(THIS POST WAS COPIED, BY PERMISSION, FROM AN EMAIL THAT I RECIEVED FROM RHETT BUTLER, GOVERNMENT LIASON WITH THE ASSOCIATION OF GOSPEL RESCUE MISSIONS.)




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“Thank you for your e-mail. I think we are all very concerned. Right now, until a determination is made by the U.S. Department of Labor or and agreement of some sort is reached there is not much we can do. If a determination is not in the state’s favor we will try to find money, but right now our revenue’s are flat and there is currently not on-going revenue coming in enough to sustain taking that on, with the caveat that we don’t yet know how much more money this would require. There could be some stop gap measures etc, you are correct the cost to institutionalize could be as much or greater. So until we have more answers from the feds our options are limited and I am very concerned about what we will or will not be able to do once that determination is made.”
