Federal nonprofit policy updates

From the National Council of Nonprofit Associations

Stopgap needed for 2007 spending – Congress is unlikely to finish 2007 appropriations bills this year and is expected to pass a "continuing resolution" to maintain (or lower) 2006 funding levels into next year. The duration of this stopgap measure remains unclear.

Clarification for appraisals – The Treasury Department has clarified that qualified appraisals for donated property over $5,000 must be conducted by a qualified appraiser using generally accepted standards.

Regulation of voter guides expanded – The Federal Election Commission (FEC) has determined that voter guides implying support or opposition to federal candidates can be regulated under current campaign finance laws.

New anti-terrorist financing guidelines released – The Treasury Department has released a new version of the Anti-Terrorist Finance Guidelines: Voluntary Best Practices for U.S.-Based Charities. Nonprofits have raised concerns about the report, including inconsistency with federal and state laws, burdensome requirements and that the guidelines are not perceived as voluntary.

Church electioneering bill introduced in Senate – Senate Bill 3957, introduced by Senator James Inhofe (R-OK), is the first bill in the Senate that would allow houses of worship to speak out on “public issues, election contests and pending legislation made in a theological or philosophical context." Similar bills have been introduced in the House in recent years.

Final rule for changes in Combined Federal Campaign – The Office of Personnel Management issued its final ruling for changes in the Combined Federal Campaign. It addresses eligibility requirements and accountability standards, as well as donor responsibility.

Possible increase in postal rates – The United States Post Office has proposed new mail standards for 2007. According to the Alliance for Nonprofit Mailers, the standards would result in a 7.7 percent increase in price for 1 oz. letters.

IRS news:

• The IRS has released guidelines for nonprofits to estimate federal excise tax telephone refunds.
• The Treasury Department asked the Office of Management and Budget (OMB) to review several IRS forms, including the Form 990-T. Comments are due to OMB by December 14.
• The IRS form for Unrelated Business Income Tax is now available online.
• Exempt Organizations has released its FY 2007 Implementing Guidelines.The guidelines describe 2006 accomplishments, including increased education and outreach, the Political Activity Compliance Initiative, and a dramatic reduction in the backlog of exempt organization applications. Priorities for 2007 include a redesign of the Form 990, a detailed report on executive compensation practices, and continued work on electronic filing.
• The FY 2007 Annual Audit Plan, released by the Treasury Inspector General for Tax Administration (TIGTA), outlines plans to review IRS programs geared toward nonprofits. The review will include the oversight of nonprofit hospitals, protection from terrorist-related activity, and Form 990 compliance.

The National Council of Nonprofit Organizations provides a monthly update on federal nonprofit policy issues and issues affecting nonprofits in other states. Click here to subscribe to NCNA’s public policy updates.