Washington Snapshot

Washington Snapshot: Updated Federal Grants Guidance

MatthewCain — Fri, 05 Apr 2024 17:39:52 +0000

Washington Snapshot: Updated Federal Grants Guidance MatthewCain Friday, April 5, 2024 - 1:39 pm

Washington Snapshot

Washington Snapshot: Updated Federal Grants Guidance

Friday, April 5, 2024 - 1:39 pm

Government Affairs Team

Public policy news and updates for the philanthropic sector

April 5, 2024

What's Happening This Week...

News from the Council (and Friends)
What We're Tracking in DC
Federal Government Engagement Opportunities
Happening in the States
News, Resources, and Events

News from the Council (and Friends)

Practice and Purpose of Policy

As organizations committed to strengthening community foundations, CFLeads and the Council on Foundations are partnering to offer a new public policy and advocacy training course for community foundations. Practice and Purpose of Policy will provide community foundation leaders and staff with the knowledge and resources needed to excel in advocating for the nonprofits and communities doing the hard work of social change. Register today to join us May 21-22.

New Report on Narratives in Philanthropy

Our new report, “Philanthropy's New Voice: Building Trust With Deeper Stories and Clear Language” offers science-backed strategies for foundations to build understanding and trust, starting with the words they use and the stories they tell. It is the result of a yearlong research collaboration between the Council on Foundations and the Center for Public Interest Communications. Download your copy today.

Independent Sector seeks policy proposals to strengthen philanthropy

Calling nonprofit practitioners and academics! Submit your proposals by Monday, April 15, 2024 for the 13th Annual Symposium on Public Policy for Nonprofits, hosted by Independent Sector, the Association for Research on Nonprofit Organizations and Voluntary Action (ARNOVA), and Nonprofit Policy Forum. Learn more about this year’s theme, “Nonprofit Civic Infrastructure: A Recipe for a Thriving Nation.”

What We're Tracking in DC

Office of Management and Budget Finalizes Updates to Federal Grants Guidance

The Biden Administration released finalized revisions to federal financial assistance guidance. The revisions clarify and streamline the federal grants process with the goal of better supporting the communities these funds are meant to serve. See the National Council of Nonprofits’ initial analysis. Key provisions include:

Increasing the “de minimis” rate for indirect costs from 10% to 15%
Making Notice of Funding Opportunities more accessible by ensuring they are written in plain English, better highlighting eligibility requirements, and offering pre-award technical assistance
Eliminating the English language requirement for notices, applications, and reporting
Encouraging federal agencies to consult with the communities their grants aim to support

The updates come shortly after the launch of the Federal Program Inventory, a searchable tool of all federal financial assistance programs.

The Council commented on OMB’s draft guidance in December 2023 applauding the revisions and urging the Administration to go further.

Soon to come: IRS and Treasury Priority Guidance Plan

In March, Treasury and the IRS requested recommendations from the public for their 2024-2025 Priority Guidance Plan. This annual document details the Administration’s tax priorities for the coming year. The Council shares comments with Treasury and the IRS each year to ensure philanthropy’s priorities are heard. Past comments have included the following requests, among others:

Clarification of the definition of a donor-advised fund and taxable distributions to DAFs
Exemption from the definition of a DAF for certain scholarship funds and other funds for which donors have limited advisory privileges
Guidance that foundation-sponsored student loan forgiveness programs are qualifying charitable distributions
Designation of economic development as a charitable activity
Updates to the definition of tax-exemption to clarify that organizations that promote racial and ethnic discrimination and violence are not charitable

What are we missing? Let us know at govt@cof.org.

Federal Government Updates and Opportunities

The IRS warned about scammers using fake charities to obtain money and personal information from well-meaning individuals as part of its annual Dirty Dozen campaign.
The U.S. Agency for International Development hosted a roundtable discussion with philanthropic partners about the ongoing crisis in Haiti.
The Department of the Interior announced $1 million in funding through the Native American Tourism and Improving Visitor Experience Act. The grant opportunity is open to Native Hawaiian Organizations.

Happening in the States

Courtesy of our colleagues at the National Council of Nonprofits

State Legislative Roundup

While state budgets and social policies get most of the media attention, state legislatures have been digging deep into policy issues that directly affect the ability of charitable nonprofits to advance their missions or, in the case of voting, affect the ability of the people nonprofits serve to engage in democracy. Highlights include charitable giving incentives and sales and use taxes.

States Consider Donor Intent Legislation

Legislation being pushed in several states seeks to create (some say reiterate) the rights of donors to sue charitable nonprofits that donors or their heirs believe are not following the donor’s intent. Kansas enacted a law last year that provides legal recourse to an individual charitable donor when an endowment agreement is violated. Similar bills are pending in Georgia and Kentucky, and another recently failed in Vermont. In virtually all cases, the bills appear to be advanced by a national organization, although no examples of abuse, whether random or systematic, have been alleged.

News & Resources

What Philanthropy Elites Can Learn from Appalachia, Chronicle of Philanthropy
Why giving circles are the fastest-growing form of philanthropy right now, Axios
Philanthropists Who Want to Make an Impact Should Start With Small Policy Changes, Barron’s

Upcoming Events

Building Trust in Philanthropy With Deeper Stories and Clear Language

April 19
2:00-3:00 p.m. ET

Practice and Purpose of Policy: A Training for Community Foundation Leaders

May 21-22
1:00-5:00 p.m. ET

Keep in Touch!

Please feel free to reach out to any of us on the Government Relations Team with comments or concerns, or to share an issue, article, event, or op-ed you would like to see covered in a future Washington Snapshot.

View this email as a web page.

Shared purpose. Collective voice. Greater impact.

Public Policy

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Continue the conversation with your peers

Go to the Philanthropy Exchange

Related Events

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Washington Snapshot: Reading the Green Book

MatthewCain — Fri, 22 Mar 2024 17:38:58 +0000

Washington Snapshot: Reading the Green Book MatthewCain Friday, March 22, 2024 - 1:38 pm

Washington Snapshot

Washington Snapshot: Reading the Green Book

Friday, March 22, 2024 - 1:38 pm

Government Affairs Team

Public policy news and updates for the philanthropic sector

March 22, 2024

What's Happening This Week...

News from the Council
What We're Tracking in DC
Federal Government Engagement Opportunities
Happening in the States
News, Resources, and Events

News from the Council

Building Together Early Registration Ends TODAY

Still planning to attend Building Together but haven't registered yet? Today is the last day for early registration -- which means it's the last day for Council members to receive a $500 discount.

Is your organization going to send a group? There's still a group discount after early registration ends tonight -- but you'll save so much more if you book today.

See the full Building Together schedule and register now.

What We're Tracking in DC

Biden Administration Releases the “Green Book”

The Biden Administration released the President’s budget request for fiscal year 2025 and its associated revenue proposals — also called the “Green Book.” As it has for the past two years, the Green Book includes two restrictions that would impact foundations:

It prohibits private foundations from counting payments to disqualified individuals—including salaries to family members—toward their 5% payout requirement.
It limits private foundation to donor advised fund transfers. Any funds transferred from a private foundation to a DAF would have to be paid out by the end of the following taxable year to be a qualifying distribution for the private foundation.

It is important to note that the President’s budget request is not U.S. law, and current law has not changed. Rather, the budget request and the Green Book serve as messaging documents that lay out the President’s priorities for the upcoming fiscal year.

IRS Funding Stays Flat in Fiscal Year 2024 Appropriations Bill

Congressional appropriators released text for a government funding bill for the current fiscal year. The legislation, which must be passed before midnight on Friday to avoid a partial government shutdown, keeps IRS funding at $12.3 billion — the same as for FY2023. The package also includes a $20.2 billion reduction in the IRS funding authorized as part of the Inflation Reduction Act.

Locally Led Development and Humanitarian Response Act (H.R.7710/S.3994) Introduced

This week, Rep. Sara Jacobs (D-CA) and Sen. Chris Coons (D-DE), along with Sens. Joni Ernst (R-IA), Tim Kaine (D-VA), and Pete Ricketts (R-NE), introduced bipartisan legislation aimed at strengthening locally led development. This bill would clear some hurdles that currently make partnering with locally led organizations abroad difficult for USAID, including authorizing the agency to accept proposals in languages other than English. The bill has already been passed by the House Foreign Affairs Committee. Read a summary.

Federal Government Updates and Opportunities

The National Fish and Wildlife Foundation announced a request for proposals for the 2024 America the Beautiful Challenge. Nonprofits are eligible to apply for grants aimed at conservation and restoration. Partnerships with state, local, and Tribal governments are encouraged.
The Department of the Treasury released new analysis of the impact of the Inflation Reduction Act on rural and other underserved communities.

Happening in the States

Courtesy of our colleagues at the National Council of Nonprofits

Trend Spotting: Nonprofit Regulations

States are considering a range of regulatory measures that could impact charitable nonprofits. Recently introduced bills would permit raffles and bingo for charitable fundraising, require nonprofits to file an annual report with the Secretary of State, make fraudulent solicitation of charitable contributions punishable under the criminal code, and increase the threshold for a charitable organization to be required to register and report contributions.

Child Care Legislation in the States

Recent surveys on nonprofit workforce shortages found that challenges in accessing child care impact the ability of nonprofits to recruit and retain employees. States around the country are also recognizing this crisis and advancing policies to increase child care availability and affordability. Pending bills would establish an Office of Early Childhood Services, establish a Certified Child Care Community Designation Program to increase child care and early childhood education services, and require prospective employees and volunteers at child care centers to undergo criminal background checks.

News & Resources

Building a stronger infrastructure workforce requires more than money, Brookings Institution
When does it pay to become a nonprofit?, Aspen Institute
Anti-DEI Lawsuits Threaten Nonprofits, Philanthropies, Nonprofit Quarterly
Seize The Moment: Tap Into Remaining American Rescue Plan Act Funds, The NonProfit Times

Upcoming Events

Global Grantmaking Essentials

April 10, 11, 16
1:00-5:00 p.m. ET

Practice and Purpose of Policy: A Training for Community Foundation Leaders

May 21-22
1:00-5:00 p.m. ET

Keep in Touch!

View this email as a web page.

Shared purpose. Collective voice. Greater impact.

Public Policy

Interested in the topic?

Continue the conversation with your peers

Go to the Philanthropy Exchange

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Washington Snapshot: Foundations on the Hill Next Steps

MatthewCain — Fri, 08 Mar 2024 18:38:08 +0000

Washington Snapshot: Foundations on the Hill Next Steps MatthewCain Friday, March 8, 2024 - 1:38 pm

Washington Snapshot

Washington Snapshot: Foundations on the Hill Next Steps

Friday, March 8, 2024 - 1:38 pm

Government Affairs Team

Public policy news and updates for the philanthropic sector

March 8, 2024

What's Happening This Week...

Legislative Alert
What We're Tracking in DC
Federal Government Engagement Opportunities
Happening in the States
News, Resources, and Events

Legislative Alert

Foundations on the Hill 2024 Roundup and Next Steps

Thank you to all who joined us in Washington, DC for #FOTH2024! We heard from a wide array of speakers about issues like the Supreme Court’s affirmative action decision and the importance of advocacy and policy engagement. Foundations from around the country met with their members of Congress to discuss key issues related to the nonprofit and philanthropic infrastructure.

Take action to keep building momentum for our sector’s policy priorities. Here are two ways you can urge members of Congress to prioritize philanthropy right now:

Ask your members of Congress to co-sponsor the Workforce Development through Post-Graduation Scholarships Act. Individuals can take our action alert, and your organization can sign onto this letter showing support for this important legislation.
Ask your members of Congress to support the Charitable Act. With a tax bill in the works, now is the ideal time to let Congress know just how important the universal charitable deduction is to nonprofit organizations and our communities.

What We're Tracking in DC

Treasury and the IRS Announce Hearing on Donor-Advised Funds

On May 6, the IRS will host a hearing on proposed donor-advised fund (DAF) regulations. Dozens of organizations, including the Council, submitted comments to Treasury and the IRS detailing concerns with the proposed regulations during the open comment period. This public hearing is an additional opportunity for organizations to voice concerns with the proposed rules and how the IRS can address them. Organizations can join the hearing in person in Washington, DC or call in. Is your foundation planning to speak at the hearing? Let us know by emailing govt@cof.org.

Treasury and the IRS Request Comments on Priority Guidance

Each year, Treasury and the IRS ask the public for recommendations for their annual priority guidance plan. Past Council letters have addressed questions our members have raised concerning DAFs, global philanthropy, foundations’ ability to grant post-graduation scholarships, and economic development as a charitable activity. Comments are due at the end of May. Let us know if you have suggestions for what we should include this year by emailing govt@cof.org.

Federal Government Updates and Opportunities

The U.S. Agency for International Development announced a new partnership with the Skoll Foundation aimed at advancing locally led development.
The Economic Development Administration released an early analysis of the equity impacts of its new Good Jobs Challenge, an initiative that invested $500 million in workforce training partnerships.

Happening in the States

Courtesy of our colleagues at the National Council of Nonprofits

Hot Legislative Trends in the States So Far This Year

With most state legislatures well into their stride for the year, several trends affecting the work of charitable nonprofits have emerged.

Child Care: Legislation in Arizona, Delaware, and Nebraska proposes increasing government subsidies for families to pay for child care or limiting copays in certain programs. A comprehensive bill in Missouri would create three tax credits to help providers and employers, as well as promote charitable giving.
Government Grants and Contracting Reform: Bills in California would extend the recently enacted Prompt Payment Act to all signed final agreements with charitable nonprofits and make other nonprofit-friendly changes to the government grants process.  Kentucky legislation seeks to help nonprofits identify government funding opportunities by establishing a database of all state grants. A measure in Vermont would, among other things, mandate prompt payment by the government, streamline the grant application and reporting processes, and promote adequate indirect cost rates.
Sales Tax Exemptions: Maine’s Governor is calling on the Legislature to extend the current partial exemptions to all charitable nonprofits in the state.

American Rescue Plan Act Investments in Nonprofits

State, local, Tribal, and territorial governments have until December 31, 2024, to commit to how they will spend (obligate) their allocations of the $350 billion in State and Local Fiscal Recovery Funds enacted as part of the American Rescue Plan Act. Recent announcements include the reopening of applications for a North Carolina grant program to expend remaining funds, as well as a Wisconsin community’s plan to allocate additional funds for competitive grants to support early childhood development, child care and families, and other examples in Connecticut and Michigan.

News & Resources

Election year homework: Building the future all communities deserve, The Hill
What’s happening in Haiti, and what’s the humanitarian backdrop?, The New Humanitarian
Building Funder Capacity to Work with Communities: A Rural Environmental Justice Case Study, Aspen Institute

Upcoming Events

Essentials of Policy Advocacy for Grantmakers

March 13-14
1:00-5:00 p.m. ET

Global Grantmaking Essentials

April 10, 11, 16
1:00-5:00 p.m. ET

Keep in Touch!

View this email as a web page.

Shared purpose. Collective voice. Greater impact.

Public Policy

Interested in the topic?

Continue the conversation with your peers

Go to the Philanthropy Exchange

Related Events

Related Resources

Washington Snapshot: HUD Awards Deadline Extended

MatthewCain — Fri, 23 Feb 2024 18:37:09 +0000

Washington Snapshot: HUD Awards Deadline Extended MatthewCain Friday, February 23, 2024 - 1:37 pm

Washington Snapshot

Washington Snapshot: HUD Awards Deadline Extended

Friday, February 23, 2024 - 1:37 pm

Government Affairs Team

Public policy news and updates for the philanthropic sector

February 23, 2024

What's Happening This Week...

Happening at the Council
What We're Tracking in DC
Federal Government Engagement Opportunities
Happening in the States
News, Resources, and Events

Happening at the Council

DEADLINE EXTENDED: HUD Secretary’s Award for Public-Philanthropic Partnerships

Do you know of a public-philanthropic partnership that helped advance economic and community development this year? The Department of Housing and Urban Development is seeking foundations to recognize, and the project doesn't have to be about housing to win. The award has recognized all types of foundations for innovative, sustainable projects ranging from transit-oriented development to disaster relief funds to creating community centers for vulnerable populations.

You have ten more days to apply: applications are now due on March 4. All grantmakers are eligible for this award. Email hudaward@cof.org with any questions.

What We're Tracking in DC

Comments on Proposed DAF Regulations Submitted

Last week, we submitted our comments to Treasury and the IRS about proposed donor advised fund (DAF) regulations, along with more than 140 foundations joining our letter. We discussed:

Our appreciation for provisions that will improve the giving environment, including allowing DAFs to use equivalency determination and the scholarship and disaster fund DAF exceptions.
Sector concerns about the breadth of the new definitions of a DAF and donor advisor, including the regulations’ potential imposition of additional regulatory requirements on other types of charitable funds and giving.
Our members’ concerns about the short implementation timeline of these proposed regulations.
Additional potential burdens that might create a chilling effect for charitable giving.

Overall, we emphasized the importance of DAFs as a tool that democratizes philanthropy and that has become a vital component of the charitable infrastructure. Thank you to all who provided input, feedback, and suggestions as we developed these comments.

Elsewhere in DC:

IRS Commissioner Danny Werfel testified in front of the House Ways and Means Committee last week. While the hearing primarily focused on the current tax filing season and the Inflation Reduction Act’s increase in IRS funding, nonprofits did come up briefly: Rep. Claudia Tenney (R-NY) raised the issue of the IRS’s response to allegations of nonprofits providing material support to foreign terrorist organizations.
The Ways and Means Committee advanced the End Zuckerbucks Act (H.R.1725) out of committee. The bill, which prohibits nonprofits from funding election administration, has not yet been introduced in the Senate.
Funding for some federal agencies expires on March 1, and a path forward is unclear. The House Freedom Caucus is calling for a year-long funding resolution that would trigger 1% spending cuts across the government. It is unlikely such a resolution would see the broad bipartisan support it needs for passage, meaning we are once again on shutdown watch.

Federal Government Updates and Opportunities

The Biden-Harris Administration held an interagency youth policy summit aimed at giving young people the opportunity to directly influence federal policy impacting them. The summit included a commitment of $600,000 in grants for youth and organizations connected to the event, largely funded by private foundations.
The White House hosted a convening on equity bringing together civil rights organizations, community organizers and advocates, and policy leaders to discuss the Administration’s equity agenda. The White House also released agency equity action plans.

Happening in the States

Courtesy of our colleagues at the National Council of Nonprofits

Finding Solutions to Workforce Shortages

A nationwide survey last year found that charitable nonprofits continue to face recruitment and retention challenges, creating workforce shortages that effectively deny communities access to vital services. Policymakers in Iowa, New York City, North Carolina, and elsewhere have been considering numerous solutions at state and local levels.

Expanding, Restricting Property Tax Exemptions for Nonprofits

State legislators are once again looking to nonprofit tax exemptions either to fill state coffers by limiting exemptions or extend support to nonprofits in their communities. Pending bills seek to alter property tax law in the areas of economic development, higher education, hospitals, and houses of worship.

News & Resources

Webinar: Nonprofits and Elections 2024: Why and How You Should Engage (and stay nonpartisan), National Council of Nonprofits
How Foundations Are Responding to the U.S. Supreme Court Affirmative Action Rulings, Center for Effective Philanthropy
The Strategic Value of Trust-Based Philanthropy, Stanford Social Innovation Review

Upcoming Events

Global Philanthropy’s Crucial Role in Ukraine on the Second Anniversary of Russia’s Invasion

February 29
10:00 a.m. ET

Essentials of Policy Advocacy for Grantmakers

March 12-14
1:00-5:00 p.m. ET

Keep in Touch!

View this email as a web page.

Shared purpose. Collective voice. Greater impact.

Public Policy

Interested in the topic?

Continue the conversation with your peers

Go to the Philanthropy Exchange

Related Events

Related Resources

Washington Snapshot: DAF Comments Due Next Week

MatthewCain — Fri, 09 Feb 2024 18:36:15 +0000

Washington Snapshot: DAF Comments Due Next Week MatthewCain Friday, February 9, 2024 - 1:36 pm

Washington Snapshot

Washington Snapshot: DAF Comments Due Next Week

Friday, February 9, 2024 - 1:36 pm

Government Affairs Team

Public policy news and updates for the philanthropic sector

February 9, 2024

What's Happening This Week...

Happening at the Council
What We're Tracking in DC
Federal Government Engagement Opportunities
Happening in the States
News, Resources, and Events

Happening at the Council

Applications Open for the HUD Secretary’s Award for Public-Philanthropic Partnerships

Each year, the Council partners with the Department of Housing and Urban Development to present the HUD Secretary’s Award. Award recipients are grantmakers who have partnered with government at all levels on initiatives aimed at community development, disaster resilience, and more.

Last year, we recognized the Greater Milwaukee Foundation, which worked with the City of Milwaukee and other philanthropic and governmental organizations to support the Community Development Alliance. Aimed at advancing racial equity by creating new pathways to home ownership for people of color, the Community Development Alliance funded the construction of 150 homes and created a fund that will acquire 100 more homes each year.

The award is open to all grantmakers. Council members and National Standards-accredited community foundations receive bonus points on their applications. Contact hudaward@cof.org with questions.

Foundations on the Hill – February 25-28 in Washington, DC

FOTH2024 will feature several in-depth discussions, including a conversation led by sector experts as they discuss the role of philanthropy in catalyzing a just and equitable society that encourages participation in the democratic process, protects each citizen’s right to be counted, protects the right to vote, and provides fair representation without restriction and interference.

Throughout FOTH2024, guest speakers will explore ways the broader sector can work to protect democracy, provide examples of current work, and examine the emergence of cross-sector partnerships in this common pursuit. Register and view additional information about the agenda.

What We're Tracking in DC

Last Chance to Submit Donor Advised Fund Comments

As you know by now, Treasury and the IRS announced proposed regulations on donor advised funds in November 2023. Comments on these proposed regulations are due next Thursday, February 15. We will include a link to our comments in the next edition of Snapshot, and we encourage you to share your comments as well.

End Tax Breaks for Dark Money Act Introduced

Sen. Sheldon Whitehouse (D-RI) and Rep. Judy Chu (D-CA) introduced the End Tax Breaks for Dark Money Act (S.3743/H.R.7244) this week. The bill would impose a capital gains tax on donations of appreciated property to section 501(c)(4), section 501(c)(5), and section 501(c)(6) organizations. The introduction of this bill follows an uptick in congressional interest in nonprofit political activity, in particular so-called “dark money” donations to 501(c)(4) organizations.

Ways and Means Committee Seeks Information about Nonprofits’ Support for Terrorism

Last week, a bipartisan group representing many members of the Ways and Means Committee sent letters to Treasury Secretary Janet Yellen, IRS Commissioner Daniel Werfel, and FBI Director Christopher Wray asking for information about their work to identify charities providing financial and material support to terrorist organizations. These letters are a continuation of the Committee’s work investigating nonprofit support of terrorist organizations, including their approval of H.R.6408 last year. H.R.6408 would strip nonprofit organizations suspected of supporting terrorist groups of their tax-exempt status. We continue to monitor this issue as the conversation evolves.

Federal Government Engagement Opportunities

The Federal Emergency Management Agency announced funding opportunities for Hazard Mitigation Assistance programs. Nearly $2 billion is available for flood mitigation and resilient infrastructure programs. Apply before February 29.
The White House and Department of Education announced the Biden Administration’s Improving Student Achievement Agenda, an initiative aimed at accelerating academic performance. They partnered with several nonprofit and philanthropic organizations that also announced commitments to support academic achievement, including the Charles Stewart Mott Foundation and the Wallace Foundation.
The United States Agency for International Development announced a partnership with the Conrad N. Hilton Foundation aimed at advancing locally led development.
The Department of Commerce launched the U.S. AI Safety Institute Consortium, a group of AI creators, researchers, civil society organizations, and other stakeholders who will work toward the development of safe and trustworthy artificial intelligence.

Happening in the States

Courtesy of our colleagues at the National Council of Nonprofits

Diversity, Equity, and Inclusion in Employment Policies

Legislators in multiple states are seeking to curb diversity, equity, and inclusion (DEI) policies and programs in employment policies. An Arizona bill would, among other things, prohibit state and local governments from entering into or renewing contracts with businesses or nonprofits that participate in DEI programs, and defund programs that promote or adopt any theory of unconscious or implicit bias. Florida lawmakers are considering legislation to make it an unlawful employment practice for a nonprofit organization or an employer receiving state funding to require any training, instruction, or other activity on sexual orientation, gender identity, or gender expression. A Utah bill seeks to prohibit all employers from applying or promoting unconscious bias or critical race theory as a condition of employment. Taking a different approach, a newly introduced bill in Idaho would protect gender identity and sexual orientation under the Idaho Human Rights Act.

State Data Privacy Legislation Moving in the States

Concerns over the privacy of personal data collected by for-profit businesses and the lack of federal standards continue to generate legislative proposals in the states. Laws typically mandate data privacy policies, regulate use of data, and provide rights to individuals to protect their data. While nonprofits have largely been exempted from legislation and laws, state lawmakers are now applying the same requirements to them as for-profits. Examples in Maine, New Jersey, and Vermont indicate the direction of this trend.

Upcoming Webinar: Nonprofits and Elections 2024: Why and How You Should Engage (and stay nonpartisan)

Wednesday, Feb. 21, 2024, 3:00 pm - 4:15 pm Eastern

This upcoming nationwide webinar presents national experts explaining how charitable nonprofits can engage in the 2024 elections in legal and nonpartisan ways and – more importantly – why it’s to their missions’ advantage to get involved.

News & Resources

Protecting the right to give according to our values, Candid
Investing in Systems Change Capacity, Stanford Social Innovation Review
11 Trends in Philanthropy for 2024, Dorothy A. Johnson Center for Philanthropy
Access Remaining COVID-Relief Funds Before It Is Too Late (Webinar Recording), National Council of Nonprofits

Upcoming Events

Global Philanthropy’s Crucial Role in Ukraine on the Second Anniversary of Russia’s Invasion

February 29
10:00 a.m. ET

Essentials of Policy Advocacy for Grantmakers

March 12-14
1:00-5:00 p.m. ET

Keep in Touch!

View this email as a web page.

Shared purpose. Collective voice. Greater impact.

Public Policy

Interested in the topic?

Continue the conversation with your peers

Go to the Philanthropy Exchange

Related Events

Related Resources

Washington Snapshot: HUD Awards Applications Now Open!

MatthewCain — Fri, 26 Jan 2024 18:35:21 +0000

Washington Snapshot: HUD Awards Applications Now Open! MatthewCain Friday, January 26, 2024 - 1:35 pm

Washington Snapshot

Washington Snapshot: HUD Awards Applications Now Open!

Friday, January 26, 2024 - 1:35 pm

Government Affairs Team

Public policy news and updates for the philanthropic sector

January 26, 2024

What's Happening This Week...

Happening at the Council
Federal Government Engagement Opportunities
What We're Tracking in DC
Happening in the States
News, Resources, and Events

Happening at the Council

Foundations on the Hill 2024 - Register Now!
Foundations on the Hill participants will have exclusive access to the premier presentation of the National Study on DAFs, a one-of-a-kind study collecting data on at least 100,000 DAF accounts held by more than 80 DAF sponsoring organizations across the United States.

Join us at #FOTH2024 on February 25-28 in DC. FOTH is a robust public policy and advocacy conference experience featuring insightful presentations and discussions of the latest data on DAFs, philanthropy’s role in democracy and civic engagement, and more!

Building Together: Leading Collaboratively Across Differences
Building Together is a new immersive learning experience for philanthropic leaders who want to develop strategies and skills to bridge differences and counteract toxic polarization. We just announced that David Brooks will join us as a speaker. Register now to join us in Chicago from May 6-9 and be part of this experience.

Federal Government Engagement Opportunities

HUD Secretary’s Award – Applications Open

Has your foundation ever partnered with a state or federal agency to distribute disaster relief funds? Or perhaps you have worked with local government to develop affordable housing and community centers, piloted a rental project aimed at expanding housing opportunities in rural areas, or launched a competition aimed at enhancing public policy’s reach in underserved communities. These are just some examples of the critical work foundations undertake to help bridge the gaps between government and the communities it intends to serve.

Public-philanthropic partnerships like these are recognized annually by the U.S. Department of Housing and Urban Development and the Council. Applications are now open for the 12th Annual HUD Secretary’s Award. This award, which recognizes excellence in public-philanthropic partnerships, is open to all U.S.-based grantmakers. Recipients will be celebrated at an awards ceremony in Washington, DC this summer.

Applications are due February 23. Contact hudaward@cof.org with any questions.

What We're Tracking in DC

Safeguarding Charities Act introduced

Sen. Marco Rubio (R-FL) and Rep. Greg Steube (R-FL) introduced the Safeguarding Charities Act (S.3604/H.R.7027) last week. This bill clarifies that tax exempt status does not necessarily mean an organization receives federal financial assistance.

Bipartisan tax bill update

Senate Finance Committee Chair Ron Wyden (D-OR) and House Ways and Means Committee Chair Jason Smith (R-MO) released text of their tax deal. The package includes updates to the Child Tax Credit, as well as several corporate tax incentives. The bill was approved by the Ways and Means Committee last week—but while this is an important step, the bill still must go before the full House and be considered by the Senate.

Take action: urge your members of Congress to support the Charitable Act (S.566/H.R.3435).

Happening in the States

Courtesy of our colleagues at the National Council of Nonprofits

State of the States: Priorities of Interest to Nonprofits

Most governors have delivered their State of the State addresses, released their budget frameworks, or both, to advance their agendas for 2024. So far, governors have highlighted their priorities in the areas of child care availability and affordability, natural disaster resiliency and recovery, tax cuts, and workforce development policies aimed at alleviating workforce shortages.

Promoting Child Care Access, Affordability

State legislators are demonstrating a commitment to expanding access to affordable child care. Given that a large share of child care providers are nonprofit organizations and that the lack of child care was identified as a major factor causing the nonprofit workforce shortage, the trend is of keen interest to charitable organizations across the country. Policy solutions to overcoming the lack of adequate, quality child care come in many forms.

Property Tax Exemptions: Bills in Indiana, Kansas, and Missouri take different approaches to providing exemptions for nonprofit and for-profit properties used to provide child care.
Sales Tax Exemptions: Legislation in Utah would exempt purchases of material for construction or expansion of child care facilities from the state sales tax.
Tax Credits: A bill pending in Wisconsin would grant refundable tax credits up to $100,000 for expenses incurred for starting child care programs for employees and tax credits up to $3,000 per child for child care for employees’ children.
Regulations: Indiana and Nebraska have legislation pending to reduce administrative, licensure, and insurance requirements to expand child care availability.

Free Nationwide Nonprofit Webinar Tuesday, January 30 at 3:00 pm ET

Access Remaining COVID-Relief Funds Before It Is Too Late
Tens of billions of dollars are still available for charitable nonprofits, but only if state and local governments commit to spending those funds on nonprofits by the end of 2024. Otherwise, the federal government may claw back uncommitted funds. Join this nationwide webinar to make sure charitable nonprofits know they are eligible for these resources and know how to access them before it’s too late. Treasury Deputy Secretary Wally Adeyemo will kick off the discussion of how nonprofits can access remaining Coronavirus State and Local Fiscal Recovery Funds made possible through the American Rescue Plan Act. He and other speakers will address the availability of these funds, priorities that deserve special attention, and examples of what works.

News & Resources

How is a shift to cash changing the aid sector?, Devex
How a Local Nonprofit Created a Case-Management Application to Better Serve Its Community, Urban Institute
The right tools, employees and data can help the law get ahead of AI, The Hill

Upcoming Events

Public Policy Action Network

January 29
2:00 p.m. ET

Essentials of Policy Advocacy for Grantmakers

March 12-14
1:00-5:00 p.m. ET

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Washington Snapshot: What to Expect in 2024

MatthewCain — Fri, 12 Jan 2024 18:34:05 +0000

Washington Snapshot: What to Expect in 2024 MatthewCain Friday, January 12, 2024 - 1:34 pm

Washington Snapshot

Washington Snapshot: What to Expect in 2024

Friday, January 12, 2024 - 1:34 pm

Government Affairs Team

Public policy news and updates for the philanthropic sector

January 12, 2024

Happening at the Council

Fearless Foundation Amicus Brief Info Session
At 2 p.m. ET this afternoon, we're hosting an info session to discuss what the Fearless Foundation court case could mean for philanthropy, and why we filed an amicus brief arguing that philanthropic organizations and individuals have the right to exercise their views through giving, as protected by the First Amendment. Join us to learn more about the case and its potential impact to the charitable sector.

Foundations on the Hill 2024: February 25-28
Recent Independent Sector research showed a decades-long decline in sector advocacy efforts. Join your colleagues and other sector advocates and help reverse this troubling trend by attending Foundations on the Hill 2024! Deepen your advocacy capacity and relationships with lawmakers and Capitol Hill staff at #FOTH2024, a conference featuring interactive sessions on vital public policy topics, meetings with federal officials, networking receptions, and more. Register for #FOTH24 today.

Building Together: Leading Collaboratively Across Differences
Building Together is a new immersive learning experience for philanthropic leaders who want to develop strategies and skills to bridge differences and counteract toxic polarization. Join us in Chicago from May 6-9 to be part of this experience.

What to Expect in 2024

Congress
Congress still has work to finish from last year: funding the government. Congress recessed for the holidays after passing a temporary funding measure that funds certain departments and agencies through January 19 and the remainder through February 2. They now face the monumental task of funding the government in a short time frame or risking a government shutdown. Expect the battles to keep the government open to continue through at least the first part of 2024.

While appropriators sort out government funding, there are reports that Ways and Means Committee Chair Jason Smith (R-MO) and Senate Finance Committee Chair Ron Wyden (D-OR) have negotiated a tax package. Reporting suggests it will likely include the Child Tax Credit and several business tax incentives, but specifics have not yet been revealed. Given the current policymaking environment, the package is far from a done deal. This is an opportunity to lift up critical sector priorities, including the Charitable Act (S.566/H.R.3435). Take action: tell your members of Congress to support this important bill, which would create a temporary charitable deduction for taxpayers who do not itemize.

Finally, it's an election year: expect even more politics and messaging bills from Congress in 2024. Democrats in the Senate and Republicans in the House hold their respective majorities by slim margins. The entire House is up for re-election, while a third of the Senate will be on the ballot in November. This year’s list of resignations and retirements is lengthy, meaning the 119th Congress—set to be sworn in next January—will feature dozens of new faces and likely alter existing dynamics.

Regulatory Environment
Treasury and the IRS released proposed regulations on donor advised funds last year. The comment period on these proposed regulations has been extended to February 15. We expect final regulations to come after a review period, though the timing is not certain. The Council plans to submit comments; email govt@cof.org to let us know how these changes would impact your organization.

Treasury and the IRS will also invite the public to submit recommendations for items to be included in their 2024-2025 Priority Guidance Plan this spring. This Plan is a set of tax-related issues that Treasury and the IRS intend to prioritize for guidance in the upcoming year. As our team starts preparing our comments, let us know: what federal tax issues would you like to see clarified?

We also expect final guidance on the federal grants process from the Office of Management and Budget. The Council submitted comments on the proposed revisions toward the end of last year; thank you to all who reached out to tell us the importance of these updates.

Finally, last fall, the Department of Justice announced plans to issue proposed clarifications to the Foreign Agents Registration Act. We expect the proposed rules this April.

Federal Agencies
As President Biden’s first term draws to a close, federal agencies will be working to implement remaining pieces of his agenda, including the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. These landmark packages, which include nearly $2 trillion in funding for clean energy, infrastructure improvements, and climate resiliency, represent a major priority for the Biden-Harris Administration. Nonprofits are eligible to receive some of this funding, and Notice of Funding Opportunities are posted to grants.gov regularly. We include some of these opportunities in Snapshot, but we encourage you to track relevant agencies as well.

Happening in the States

Courtesy of our colleagues at the National Council of Nonprofits

New State Laws in 2024
New laws affecting individuals and nonprofits went into effect across the country on New Year’s Day. Here is a sampling:

Child Care: New laws in Colorado, Massachusetts, and Utah expand or increase the value of state child tax credits for dependents.
Minimum Wage: Effective this month, 22 states and more than three dozen cities and counties increased the minimum wage rates for workers. Employees in California, New York, and Washington should now be earning at least $16 per hour.
Taxes: Most states made changes to their state tax laws last year, effective Jan. 1. Among those, nine states (Arkansas, Connecticut, Georgia, Iowa, Kentucky, Mississippi, North Carolina, Ohio, and South Carolina) implemented income tax cuts, some of which may result in reduced charitable giving in the respective states.

Hot State and Local Topics in 2024
By the end of the month, legislatures in 37 states will be in full swing with another six convening in February. Here is a brief forecast of the hot topics affecting nonprofits and the people they serve:

Grants Reforms: Last year, state lawmakers introduced more than 50 bills to reform their state’s government grants and contracts processes to ensure charitable organizations receive more timely, complete, and equitable reimbursements. This trend, with aggressive nonprofit advocacy, should continue.
Child care: State policymakers are expected to continue taking steps to address child care gaps for families.
Charitable Giving Incentives: In states with budget surpluses, nonprofits will be pushing for expanded incentives, while elsewhere nonprofits will be fighting to preserve incentives that encourage individuals to give back to their communities.
Taxes, Fees, PILOTs (payments in lieu of taxes): The cycle of local governments short on cash targeting tax-exempt organizations will likely continue.

News & Resources

2024 Purple Book, National Taxpayer Advocate
Why are Americans so displeased with the economy?, Brookings Institution
Understanding the Iowa caucuses and why they’re important to the election, Washington Post
How to Build Tech Hubs in the American Heartland, Bloomberg

Upcoming Events

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January 29
2:00 p.m. ET

Essentials of Policy Advocacy for Grantmakers

March 12-14
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Washington Snapshot: Fearless Foundation Amicus Brief

MatthewCain — Fri, 15 Dec 2023 18:32:51 +0000

Washington Snapshot: Fearless Foundation Amicus Brief MatthewCain Friday, December 15, 2023 - 1:32 pm

Washington Snapshot

Washington Snapshot: Fearless Foundation Amicus Brief

Friday, December 15, 2023 - 1:32 pm

Government Affairs Team

Public policy news and updates for the philanthropic sector

December 15, 2023

What's Happening This Week...

Happening at the Council
What We’re Tracking in D.C.
Federal Government Engagement Opportunities
Happening in the States
News, Resources, and Events

Happening at the Council

Building Together: Leading Collaboratively Across Differences
Building Together is a new immersive learning experience for philanthropic leaders who want to develop strategies and skills to bridge differences and counteract toxic polarization. Join us in Chicago from May 6-9 to be part of this experience. Applications for the Bridge Builder Scholarship close TODAY.

Fearless Foundation Amicus Brief
Philanthropic donations support our communities in ways that mirror our values, playing a key role in promoting civic engagement. We believe – and the courts have ruled – that philanthropic organizations and individuals have the right to exercise their views through giving, as protected by the First Amendment. That includes efforts to support historically marginalized groups.

That’s why the Council on Foundations and Independent Sector have filed an amicus brief in support of the Atlanta-based Fearless Foundation, an organization led by Black women that helps combat underfunding in venture capital by providing grants, tools, and mentorship to women of color. Read our brief, view a summary of the case, and join our sign on statement to support philanthropy.

Foundations on the Hill 2024
Join us in DC February 25-28, 2024 for Foundations on the Hill 2024. #FOTH2024 creates an opportunity for PSOs, foundations, and sector colleagues to assemble on Capitol Hill and at federal agencies to promote a strong sector and advocate for vibrant, healthy, and equitable communities. FOTH is presented by United Philanthropy Forum in partnership with the Council on Foundations and Independent Sector.

Happy holidays from the Council!
This will be our last Snapshot of 2023. We wish you and your loved ones a restful holiday season, and we’ll see you in January.

What We're Tracking in D.C.

Ways and Means Subcommittee on Oversight Discusses Exempt Organizations
On December 13, the Ways and Means Subcommittee on Oversight held a hearing discussing the growth of the tax-exempt sector and its impact on U.S. politics. Much of the hearing focused on so-called dark money, as well as foreign donors funding U.S. nonprofits that inappropriately influence American political campaigns. The witnesses, which included University of Pittsburgh Professor Phil Hackney and Capital Research Center President Scott Walter, discussed existing channels of influence, current law, and the need for additional IRS funding to ensure adequate enforcement. The Council plans to submit testimony detailing existing safeguards protecting the nonprofit sector and preserving the integrity of our democratic process.

Reminder: Comments on the IRS’s proposed donor advised fund regulations are due January 16
As you know by now, the IRS recently released proposed regulations around donor advised funds. The proposal seeks to put in place key definitions that will be used as the basis for future regulatory action. Among the provisions, Treasury and IRS clarify the definitions of a DAF, donor, and donor advisor, as well as provide for limited exceptions to them. For example, there are carve outs from the definition of a DAF for scholarship funds and disaster relief funds in certain circumstances. The rules also provide clarification of advisory privileges and define a distribution.

View a recording of our webinar discussing the proposed rules. Comments are due on January 16, although we submitted a request for an extension to Treasury and the IRS earlier this month. To help inform our comments, please share feedback with govt@cof.org as soon as possible.

Federal Government Engagement Opportunities

The IRS announced a new organizational structure aimed at streamlining tax administration. Heather Maloy, the current IRS Chief of Staff, will be the IRS’s new Chief Taxpayer Compliance Officer, which will oversee the Tax Exempt and Government division.
The Department of the Interior and the White House Council on Native American Affairs announced a Request for Information around improving Tribal Nations’ access to capital, including both federal and non-federal grants.

Happening in the States

Courtesy of our colleagues at the National Council of Nonprofits

Recapping Nonprofit State Policy Progress in 2023
The news on federal policy has been frustrating for most of 2023, but the action in the states has been robust, engaging, and in many cases productive for nonprofits. To prove the point, the National Council of Nonprofits has created an interactive 50-State Nonprofit Policy Recap for 2023 that features nonprofit policy news and progress throughout the year through a series of eight maps.

Shaping the Debate: Reports That Are Making a Difference
Throughout 2023, new reports emerged that captured attention, informed the debates, and helped shape public policy in support of the missions of charitable organizations. Reports making a difference this year include those from AmeriCorps on volunteerism, Nonprofit New York on nonprofit leadership, Providers’ Council on the employment crisis in human services, the National Council of Nonprofits on nonprofit workforce shortages, and Americans for the Arts on the economic impact of the arts.

News & Resources

Technology built the cashless society. Advances are helping the unhoused so they’re not left behind, Associated Press
FASB Issues Standard That Enhances Income Tax Disclosures, Financial Account Standards Board
How Philanthropy is Helping Veterans Navigate the Workforce, Philanthropy Roundtable
Philanthropy Is Stepping up to Advance Reparations and Racial Repair, Barrons

Upcoming Events

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January 29
2:00 p.m. ET

Essentials of Policy Advocacy for Grantmakers

March 12-14
1:00-5:00 p.m. ET

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Public Policy

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Washington Snapshot: Ways and Means focuses on nonprofits

MatthewCain — Fri, 08 Dec 2023 18:32:04 +0000

Washington Snapshot: Ways and Means focuses on nonprofits MatthewCain Friday, December 8, 2023 - 1:32 pm

Washington Snapshot

Washington Snapshot: Ways and Means focuses on nonprofits

Friday, December 8, 2023 - 1:32 pm

Government Affairs Team

Public policy news and updates for the philanthropic sector

December 8, 2023

What's Happening This Week...

Happening at the Council
What We’re Tracking in D.C.
Federal Government Engagement Opportunities
Happening in the States
News, Resources, and Events

Happening at the Council

Building Together: Leading Collaboratively Across Differences
Building Together is a new immersive learning experience for philanthropic leaders who want to develop strategies and skills to bridge differences and counteract toxic polarization. Join us in Chicago from May 6-9 to be part of this experience.

Registration Open: Foundations on the Hill
Registration is now open for Foundations on the Hill. This event, taking place from February 25th through February 28th is your opportunity to meet your peers and advocate for the issues that matter to you. Foundations on the Hill is presented by United Philanthropy Forum in partnership with the Council on Foundations and Independent Sector.

What We're Tracking in D.C.

Ways and Means Committee Actions on Nonprofits

Ways and Means Chairman Jason Smith (R-MO) and Oversight Subcommittee Chairman David Schweikert (R-AZ) announced a hearing next week on exempt organizations’ political activities. This comes after an August Request for Information from the Subcommittee, to which the Council submitted a response detailing existing safeguards on nonprofit political activity.
The Ways and Means Committee favorably reported H.R.6408 last week. Introduced in November by Rep. David Kustoff (R-TN) and Rep. Brad Schneider (D-IL), H.R.6408 would strip nonprofit organizations of their tax-exempt status if they are found to provide material support or resources to terrorist organizations. While providing support to terrorist organizations is already prohibited, this bill would give the Treasury Secretary new enforcement abilities.

Donor Advised Fund Proposed Regulations
Last month, the Internal Revenue Service (IRS) released proposed regulations on donor advised funds (DAFs). The rules for the first time formally define DAFs, donors, and advisory privileges; explain which funds are not DAFs, including funds making distributions to a single identified organization or grants to individuals (other than for scholarships); and create anti-abuse rules for taxable distributions from DAFs. Watch our explanatory webinar.

The comment period is open until January 16, 2024, but this week, the Council submitted an extension request in hopes of giving the philanthropic sector additional time to respond. Regardless, we plan to submit comments; let us know how these changes would impact you by emailing govt@cof.org.

Council Submits Federal Grants Reform Comments
Earlier this week, we submitted comments to the Office of Management and Budget applauding their proposed update to the Uniform Guidance on federal grant applications and administration. We also requested further streamlining, including urging federal agencies to prioritize multiyear grants and provide upfront payments when possible.

Federal Government Engagement Opportunities

The Department of Commerce is seeking input on its draft Business Diversity Principles, a set of best practices on equity and economic development. Submit comments before January 5, 2024.
The Department of the Interior hosted Native Americans in Philanthropy and other leaders from the sector to announce new initiatives to strengthen public-private partnerships aimed at investing in Tribal communities.

Happening in the States

Courtesy of our colleagues at the National Council of Nonprofits

American Rescue Plan Act Funds for Nonprofits
Governments around the country continue to invest their shares of $350 billion in Coronavirus State and Local Fiscal Recovery Funds, most notably in the work of charitable nonprofits. Active funding opportunities have been opened in communities in Maryland, Michigan, and New York, while Oklahoma is receiving applications for its state-wide arts grant program.

States Consider Tax Credits for Childcare
Lawmakers in Illinois and Wisconsin are pushing measures to ease tax burdens on licensed daycare facilities, including those run by charitable nonprofits. Bills in Illinois would exempt the cost of essential supplies from sales and use taxes, plus eliminate property taxes for some. Wisconsin legislation would allow for-profit and nonprofit childcare programs to claim a refundable tax credit up to $100,000 for expenses incurred for starting their program. Read more.

Grants Reform Webinar Recap
On November 20, hundreds of charitable nonprofit leaders participated in a nationwide webinar, The Urgency of Government Grants Reform for Your Nonprofit. Presenters explained the consequences of bad grantmaking policies, such as nonprofit workforce shortages and organizations getting shut out of grants. They also laid out legislative and regulatory solutions that individuals can help influence to ensure reduced burdens, greater access to funding, and better outcomes. View the presentation slides and the recording of the program.

News & Resources

The Lobbying for Good Movement, Stanford Social Innovation Review
Is the post-pandemic surge in business dynamism here to stay?, Brookings Institution
Justice, Equity, and Repair: How Local Governments in the US Are Designing Reparations Programs, Urban Institute

Upcoming Events

Public Policy Action Network

January 29
2:00 p.m. ET

Essentials of Policy Advocacy for Grantmakers

March 12-14
1:00-5:00 p.m. ET

Keep in Touch!

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Shared purpose. Collective voice. Greater impact.

Public Policy

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Washington Snapshot: Proposed DAF Regulations

MatthewCain — Fri, 17 Nov 2023 18:30:52 +0000

Washington Snapshot: Proposed DAF Regulations MatthewCain Friday, November 17, 2023 - 1:30 pm

Washington Snapshot

Washington Snapshot: Proposed DAF Regulations

Friday, November 17, 2023 - 1:30 pm

Government Affairs Team

Public policy news and updates for the philanthropic sector

November 17, 2023

What's Happening This Week...

Breaking News
Foundations on the Hill
What We’re Tracking in D.C.
Happening in the States
News, Resources, and Events

Breaking News

Breaking News: IRS Releases Proposed Donor-Advised Fund Regulations

Earlier this week, the Department of the Treasury and Internal Revenue Service released a long-awaited proposed rule related to donor-advised funds (DAFs).

Among its provisions, the proposal clarifies key definitions and provides for exceptions to the definition of a DAF, including rules for exceptions around scholarships and disaster relief.

Here are some initial thoughts from our team on what the Treasury and IRS released. The list is not exhaustive, however, and as our Government Affairs and Legal Resources team continues to analyze this proposal, we’ll post more on our website in the next few weeks. Plus, be sure to join the Council’s pop-up discussion on the proposed regulations on November 30th at 2pm ET.

Clarifies the definition of a Donor Advised Fund (DAF): A DAF is a fund or account that is separately identified by reference to contributions of a donor or donors; owned and controlled by a sponsoring organization; and at least one donor or donor-advisor has, or reasonably expects to have, advisory privileges with respect to the distribution or investment of amounts held in such fund or account by reason of the donor's status.
Clarifies the meaning of separate identification by reference to contributions of donors: A fund is separately identified by reference to contributions of a donor or donors if the sponsoring organization maintains a formal record of contributions to the fund relating to a donor or donors. It also includes certain facts and circumstances that are relevant in determining whether a fund is separately identified in the absence of formal records of contributions to the fund.
Clarifies the definition of a donor: A donor is broadly defined to include a person who reasonably expects to have advisory privileges with respect to the distribution or investment of funds in the account. Also included is a test to determine if a donor has advisory privileges, regardless of whether they are exercised.
Potentially expands the type of funds considered DAFs: Some funds that have not historically been considered DAFs by foundations will now fall under this definition, including some giving circles, field of interest, and other committee funds.
Government and public charities are not donors: Government entities and many public charities are excluded from the definition of a donor. However, the definition does include private foundations.
Exception for disaster relief funds and certain scholarship funds: While the Secretary of the Treasury maintains the authority to exempt a fund or account from the definition of a DAF, under certain circumstances, the proposal provides two exceptions to the definition of a DAF for disaster relief funds and scholarship funds.

Tell us what stood out to you or what questions you may have about what was included. Comments are due by January 16, 2024, so let us know how these changes could impact your foundation by responding to this email or reaching out to Jenn Holcomb, Vice President, Government Affairs and Legal Resources.

Foundations on the Hill

What We're Tracking in D.C.

We’ve spent most of our time this week reading and analyzing the proposed DAF regulations, but we have been monitoring a few other conversations in D.C.:

This week, both the House and Senate passed a continuing resolution to keep the government funded through early 2024, averting a government shutdown—for now.
The House Ways and Means Committee held a hearing on rising antisemitism and terror financing during which the witnesses urged Congress to fund the President’s National Strategy to Counter Antisemitism. Most of the conversation focused on universities, though some members of Congress and witnesses did raise concerns about nonprofits.
On November 8, the Council convened a Leadership Circle on Locally Led Development. The group spent the day in Washington, D.C. hearing from stakeholders on the topic and concluded with a meeting at the U.S. Agency for International Development. We met with Deputy Administrator Paloma Adams-Allen to discuss USAID’s commitments to locally led development and potential opportunities for partnership with foundations.
President Biden announced $5 billion in support to rural communities, including $2 billion in investments aimed at economic development and $274 million to expand rural internet infrastructure.

Happening in the States

Courtesy of our colleagues at the National Council of Nonprofits

2023 Elections Recap
Election Day 2023 produced a few surprises, sighs of relief for some, and a clearer view into the trends affecting nonprofit policy priorities. Voters in four states determined party power dynamics in state legislative chambers and governors’ mansions. Also on the ballots in many states were proposals to fund affordable housing, child care, and education, as well as expansion of property tax exemptions.

Securing American Rescue Plan Act Funding for Nonprofits
With a December 2024 deadline for allocating funds in mind, state and local governments are ramping up their decisions on how to invest their share of $350 billion in Coronavirus State and Local Fiscal Recovery Funds. State and local governments have recognized the benefits and wisdom of directing significant spending on the work of charitable nonprofits in their regions. Governments are reporting recent investments in nonprofits in Michigan, Pennsylvania, Utah, and Wisconsin.

Federal Grants Reform – Webinar Monday
Join a nationwide webinar, The Urgency of Government Grants Reform for Your Nonprofit, on Monday, November 20, from 3:00 pm - 4:15 pm ET, to hear from experts on the consequences of bad grantmaking policies, such as nonprofit workforce shortages and organizations getting shut out of grants, and learn about legislative and regulatory solutions that you can help influence to ensure reduced burdens, greater access to funding, and better outcomes.

News & Resources

The Percentage of Households Donating To Charity Fell Among All Racial and Ethnic Groups Over Two Decades, Barrons
Standing together for a stronger community, Fairfield County’s Community Foundation
A Billion-Dollar Bet on Local News, The Atlantic
With AI and Automated Systems Rapidly Developing, a Focus on Equity Can Maximize Benefits for All, Urban Institute

Upcoming Events

SDG Learning Circle for Foundations

November 28
4:00 p.m. ET

Digesting Proposed DAF Regulations

November 30
2:00 p.m. ET

Keep in Touch!

View this email as a web page.

Shared purpose. Collective voice. Greater impact.

Public Policy

Interested in the topic?

Continue the conversation with your peers

Go to the Philanthropy Exchange