PUBLIC POLICY

June federal nonprofit policy updates

From the National Council of Nonprofit Associations

House and Senate approve FY 2008 Budget Resolution – The final FY 2008 budget resolution (S. Con. Res. 21) approved by Congress included $954 billion in discretionary spending, $21 billion higher than the President’s proposal. It significantly increased funding for education and health care for children and veterans and restores pay-as-you-go rules. For more information, see the Center on Budget and Policy Priorities’ analysis. 

Lobby reform passes House – The House on May 24 approved lobby reform legislation (H.R. 2316). The bill includes a lower threshold and greater frequency for nonprofit lobbying reporting, increased reporting for registered lobbyists and increased fines for violations of House and Senate rules. The bill will now be conferenced with a similar Senate bill (S. 1). For details on the impact on nonprofits, see the Lobby Reform Rundown from the Alliance for Justice. 

Advocacy threat withdrawn – An amendment to the Federal Housing Finance Reform Act of 2007 (H.R. 1427) would have prohibited nonprofits from applying for grants if they engaged in voter registration, education, or mobilization activities funded by private, non-federal funds. The amendment was withdrawn before passage of the bill. Similar amendments have appeared on housing and other bills in recent years.

IRS News
  • The Internal Revenue Service has released a revised version of Publication 561, which explains how to determine the value of non-cash charitable contributions and how to claim a deduction for non-cash gifts on tax returns. 
  • The IRS has released interim guidance on making Form 990-T available for public inspection. Nonprofit organizations that have unrelated business income of $1,000 or more are required to file Form 990-T with the IRS. Public comments on how to implement the new public inspection requirement must be submitted to the IRS by June 30, 2007.

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