Federal nonprofit policy update from NCNA
President’s FY 2008 budget introduced – The proposed federal budget for FY08 includes a wide range of cuts to education, healthcare, environmental protection, community development and other programs and is expected to shift costs to states. There is controversy over the claim that the proposal will balance the budget by 2012. For more information, see analysis by the Center on Budget and Policy Priorities and the Heritage Foundation.
Fiscal year 2007 appropriations complete –The Senate passed the $463.5 billion Continuing Resolution (H.J.Res. 20) by a vote of 81 to 15. This was the same version the House passed in January. The resolution will fund most federal agencies and programs through the end of FY07 on Sept. 30. It also allows agencies flexibility in allocating funds because most earmark directives were effectively excluded from the final language.
House addresses lobby reform – The House is expected to hold hearings and a vote on lobby reform in the coming weeks. The final bill is expected to be based on Senate’s Lobby Disclosure Act (S. 1) and may include the recently introduced Executive Branch Reform Act of 2007 (H.R. 984), which would require senior government officials to report significant contacts with lobbyists.
House Ethics Committee releases guidelines on gift and travel rules – The House Ethics Committee has released guidelines on new travel rules and an advisory memo on new gift rules adopted by the House in January. House members and staff are asked to “adhere to the spirit as well as to the letter” of the new gift rules, which prohibit legislators and staff from accepting gifts and meals from lobbyists or organizations employing or retaining lobbyists. The guidelines clarify that lobbyists can fund one-day trips by lawmakers.
IRA rollover news – The "Public Good IRA Rollover Act of 2007," which would extend and broaden the current IRA Charitable Rollover, is expected to be introduced soon. For more information, see Independent Sector’s website. Also, the President’s FY 2008 budget included a permanent extension of the IRA charitable rollover. The Council on Foundations applauded the proposal.
Constitutionality of faith-based funding – On Feb. 28, the Supreme Court is scheduled to hear arguments about whether taxpayers have the right to challenge the constitutionality of government funding for conferences supported by the White House Office of Faith-Based and Community Initiatives that are alleged to promote religious groups over secular ones (for an update, click here).
IRS news
- The IRS has posted a “Good Governance Practices for 501(c)(3) Organizations” and has stressed that the document is a “preliminary discussion draft.”
- Abuses of charitable organizations and deductions were included in IRS’ “Dirty Dozen” list of “most blatant scams affecting American Taxpayers.”
- Several March events will address implications of the Pension Protection Act of 2006.
- The IRS has requested public comment in connection with a study on the organization and operation of donor advised funds and supporting organizations. Comments must be submitted by Aug. 16.
Federal policy research and resources
- FedSpending.org, the free, searchable database of government spending, has been updated to include new data and functionality. Read the press release from OMB Watch.
- The Congressional Research Service has recently published several reports regarding nonprofits: "Grassroots Lobbying: Constitutionality of Disclosure Requirements," “Characteristics of and Reporting Requirements for Selected Tax-Exempt Organizations,” “Frequently Asked Questions About Tax-Exempt Organizations.” Additional reports of interest can be found on the Open CRS website.
- New reports document the effect of Election Day registration on voter turnout: “Voters Win with Election Day Registration” and “Election Day Registration: A Case Study.”
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