Federal nonprofit policy updates from NCNA

From the National Council of Nonprofit Associations

House appropriates $463.5 billion for 2007

The House of representatives passed a joint resolution (H J Res 20) on Jan. 31, providing $463.5 billion in appropriations for fiscal year 2007. The package funds most programs at 2006 levels with several exceptions, including increases in education, housing, and health programs.

House adopts new rules on lobbying

During the first week of January, the House passed new rules related to lobbying reform and the budget process. Lobbying reform rules include bans on meals, gifts and travel. Budget rules restore pay-as-you-go requirements and established earmark reform. The House is expected to consider additional ethics issues when it takes up S.1 (see next item) later this spring.

Senate passes ethics and lobbying reform

The Legislative Transparency and Accountability Act of 2007 (S.1) includes bans on gifts and travel, and increased disclosure related to lobbying. The bill passed without a grassroots lobbying provision supported by many in the nonprofit sector.

Supreme Court revisits campaign finance

The Supreme Court agreed to hear a case about issue ads immediately preceding general elections paid for by special interest groups. The case involves Wisconsin Right to Life ads that were flagged by the Federal Election Commission as inappropriately attempting to influence an election. A district court later ruled that the ads were protected by the First Amendment.

CFC drops anti-advocacy requirement

The Combined Federal Campaign – the workplace-giving program for federal employees – has removed a requirement that many nonprofits have interpreted as discouraging legally permissible advocacy. New regulations do not include the previous provision that participating organizations have “no expenses connected with lobbying and attempts to influence voting or legislation at the local, state or federal level.”

Increase in volunteer mileage reimbursement proposed

Senator Feingold (D-Wisc.) has introduced a bill (S. 403) that would raise the mileage reimbursement rate for volunteers who use their vehicles for charitable purposes from 14 cents to 40.5 cents per mile. The proposal would make the volunteer rate equal to that of businesses.

IRS News

• The Internal Revenue Service launched a new website, Stay Exempt, that features free web-based training geared towards small and midsize organizations.
• The IRS issued new guidance concerning the IRA charitable rollover provision.
• The 2006 Form 990 is now available. All IRS forms are accessible through the Forms and Publications website as they become available.
• New instructions for the 2006 Forms 990 and 990-EZ and Schedule A incorporate significant changes to address legislation enacted in 2006, and comments received from the public.
• Procedures concerning rulings, technical advice, and user fees were revised.

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